Debt restructuring as main challenge

BELGRADE - The main task of the reshuffled government in the economy sector should cover the country's debt restructuring.

Izvor: Tanjug

Tuesday, 13.08.2013.

08:24

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BELGRADE - The main task of the reshuffled government in the economy sector should cover the country's debt restructuring. Also putting public spending under control is one of the main tasks of the reshuffled government, Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic said. Debt restructuring as main challenge The goal has to be sustainable development which would not be based only on one business branch as is currently the case with Fiat where exports increased only after five years of investments, Tabakovic said in an interview for Tanjug. Key challenges of the economic policy are embodied in setting the basis for sustainable and stable economic growth and reduction of the unemployment rate, Tabakovic noted and added that debt restructuring is one of the biggest problems which the government needs to face now. She recalled that the country will have to pay the loan interest which is increasing by the year, as well as the loan principal. Even in 2006 when Serbia had quite enough funds in the budget from privatization, the country's public spending was in disproportion with the revenues, she said. According to this year's data, Serbia's public debt reached 60.6 percent of the GDP and this level is sustainable on condition that the recently adopted strict measures of fiscal consolidation are carried out with some degree of determination, Tabakovic said. She said that as the founder of the public companies and institutions, the government does not have a good enough insight into their operation. Individuals appointed by the government cannot view any public enterprise as their own property from which they can derive direct gains, the governor said and added that direct gain does not have to be money only, it can also be more weighty aspects than finance, such as the leverage bargaining and corruption. Tanjug Tanjug

Debt restructuring as main challenge

The goal has to be sustainable development which would not be based only on one business branch as is currently the case with Fiat where exports increased only after five years of investments, Tabakovic said in an interview for Tanjug.

Key challenges of the economic policy are embodied in setting the basis for sustainable and stable economic growth and reduction of the unemployment rate, Tabakovic noted and added that debt restructuring is one of the biggest problems which the government needs to face now.

She recalled that the country will have to pay the loan interest which is increasing by the year, as well as the loan principal.
Even in 2006 when Serbia had quite enough funds in the budget from privatization, the country's public spending was in disproportion with the revenues, she said.

According to this year's data, Serbia's public debt reached 60.6 percent of the GDP and this level is sustainable on condition that the recently adopted strict measures of fiscal consolidation are carried out with some degree of determination, Tabakovic said.

She said that as the founder of the public companies and institutions, the government does not have a good enough insight into their operation.
Individuals appointed by the government cannot view any public enterprise as their own property from which they can derive direct gains, the governor said and added that direct gain does not have to be money only, it can also be more weighty aspects than finance, such as the leverage bargaining and corruption.

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