EUR 3.5bn allocated for infrastructure still unused - EBRD
Serbia must accelerate the realization of infrastructural projects because as many as EUR 3.5 billion allocated for these projects have not been used.
Thursday, 05.03.2015.
14:02
EUR 3.5bn allocated for infrastructure still unused - EBRD
"This is already enough money to change the situation to the better," Patrone said during a panel discussion on public-private partnerships during the Kopaonik Business Forum.He said that none of the major projects in the public-private partnership sector has been realized in Serbia by now, although some have been launched.
Speaking about the banking system in Serbia, Patrone said that the system is not solvent enough and there is not enough money to grant loans to the economy.
The main reason for this lies in the high level of non-performing loans, which adds up to 22-23 percent, Patrone said and added that the nature of NLPs loans is such that better analyses need to be drafted and company restructuring needs to be launched.
The best way to solve this important matter would be to use private capital because a solution to this issue cannot be expected to come from state money collected from taxpayers, Patrone said.
He noted that the list of problems in Serbia also includes low GDP growth and high unemployment rate, but he stated that there is also considerable potential to stir economic growth into motion.
He noted that the successful moves carried out by the Serbian government include fiscal consolidation, privatization and the stand-by arrangement with the IMF.
The competition in the region is very fierce and Serbia's advantage lies, among other things, in the 15 percent corporate tax, which is a lower figure than that maintained in other countries in the region, Patrone said.
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