"Govt. again delaying economic measures"
National Bank of Serbia (NBS) Governor Radovan Jelašić says the Serbian government is again delaying the implementation of inevitable economic measures.
Thursday, 06.08.2009.
13:17
National Bank of Serbia (NBS) Governor Radovan Jelasic says the Serbian government is again delaying the implementation of inevitable economic measures. The central bank chief also said and every day of inactivity implies "that the therapy will be more intense". "Govt. again delaying economic measures" "The key issue is which medicine we will apply," the governor said in an interview with the Belgrade weekly NIN published on Thursday. The basic obstacle to the implementation of the therapy that Serbia needs is the lack of a political agreement on the measures that should be implemented, he said. Certain countries are at this time applying unpopular measures even without being asked to do so by the International Monetary Fund (IMF), he said, "but Serbia does not have the strength for such a move at this time". "The worst thing would be for the IMF to come, to make a diagnosis, make certain proposals, not receive clear answers, and then pack up and leave. The key question is which medicine we will apply. In the absence of an agreement with the IMF, there can be no money from the World Bank or the European Union (EU), either. There is no way that Serbia, or anyone else, can say - I need money, but I will do nothing in return," Jelasic was quoted as saying. He said that the best course of action for the government would be to decrease expenses, but added that "it cannot be those cut with the saving measures, because they obviously don't work". "Personal income must be limited. The way it's functioning now is unsustainable in the long run." According to Jelasic, the main topics of talks with the IMF delegation will be VAT, income and property taxes. But he noted that the latter "does not hold much money". He also mentioned excise duties in this context. Druga varijanta je da se nesto uradi kako bi se smanjili rashodi, ukazao je Jelasic, navodeci da se tako stize do penzija i svega sto je vezano za njih. The second path that the government could take in a bid to cut expenditure would "lead to pensions and everything related to them," said Jelasic. A file photo of Radovan Jelasic (FoNet)
"Govt. again delaying economic measures"
"The key issue is which medicine we will apply," the governor said in an interview with the Belgrade weekly NIN published on Thursday.The basic obstacle to the implementation of the therapy that Serbia needs is the lack of a political agreement on the measures that should be implemented, he said.
Certain countries are at this time applying unpopular measures even without being asked to do so by the International Monetary Fund (IMF), he said, "but Serbia does not have the strength for such a move at this time".
"The worst thing would be for the IMF to come, to make a diagnosis, make certain proposals, not receive clear answers, and then pack up and leave. The key question is which medicine we will apply. In the absence of an agreement with the IMF, there can be no money from the World Bank or the European Union (EU), either. There is no way that Serbia, or anyone else, can say - I need money, but I will do nothing in return," Jelašić was quoted as saying.
He said that the best course of action for the government would be to decrease expenses, but added that "it cannot be those cut with the saving measures, because they obviously don't work".
"Personal income must be limited. The way it's functioning now is unsustainable in the long run."
According to Jelašić, the main topics of talks with the IMF delegation will be VAT, income and property taxes. But he noted that the latter "does not hold much money".
He also mentioned excise duties in this context.
Druga varijanta je da se nešto uradi kako bi se smanjili rashodi, ukazao je Jelašić, navodeći da se tako stiže do penzija i svega što je vezano za njih.
The second path that the government could take in a bid to cut expenditure would "lead to pensions and everything related to them," said Jelašić.
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