“IMF satisfied with pension reforms”

Unless the economy recovers, wages and pensions will remain frozen until 2011, Deputy Prime Minister Jovan Krkobabić told B92.

Izvor: B92

Friday, 30.04.2010.

09:48

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Unless the economy recovers, wages and pensions will remain frozen until 2011, Deputy Prime Minister Jovan Krkobabic told B92. Increase in salaries in the public sector and pensions before 2011 would be considered only if the economy improved, along with higher employment GDP figures, he explained. “IMF satisfied with pension reforms” Krkobabic pointed out that he did not expect that the International Monetary Fund (IMF) delegation, which will be arriving here in mid-May, would have any complaints to the implemented pension system reforms. Commenting on Economy Minister Mladjan Dinkic's proposal to unfreeze salaries in the public sector, as well as pensions, the deputy PM said that he would only support such a move if the increase came after clear signs of economic recovery. The ruling United Pensioners' Alliance (PUPS) leader said he supported Finance Minister Diana Dragutinovic's idea of “introducing order into the tax policy, which pensioners would directly benefit from”. “The debt toward pensioners is RSD 200bn. The tax policy should become more serious,“ he stressed. Krkobabic explained that the goal was to reduce a share of pensions in the GDP down from the current 13 percent to ten percent by 2015. “This will build the country's economic strength, raise the GDP, employ more workers and provide both real payment of pensions and their increase,“ he pointed out. The idea of cutting the income tax would harm neither taxpayers nor pensioners, said Krkobabic. He also stated that the pension system reform was finished with positive marks from all relevant international institutions, including the IMF. For this reason, Krkobabic said he did not expect problems during as the IMF delegation arrives in May, for another revision of the EUR 2.9bn loan arrangement it has with Serbia. Jovan Krkobabic (Beta, file)

“IMF satisfied with pension reforms”

Krkobabić pointed out that he did not expect that the International Monetary Fund (IMF) delegation, which will be arriving here in mid-May, would have any complaints to the implemented pension system reforms.

Commenting on Economy Minister Mlađan Dinkić's proposal to unfreeze salaries in the public sector, as well as pensions, the deputy PM said that he would only support such a move if the increase came after clear signs of economic recovery.

The ruling United Pensioners' Alliance (PUPS) leader said he supported Finance Minister Diana Dragutinović's idea of “introducing order into the tax policy, which pensioners would directly benefit from”.

“The debt toward pensioners is RSD 200bn. The tax policy should become more serious,“ he stressed.

Krkobabić explained that the goal was to reduce a share of pensions in the GDP down from the current 13 percent to ten percent by 2015.

“This will build the country's economic strength, raise the GDP, employ more workers and provide both real payment of pensions and their increase,“ he pointed out.

The idea of cutting the income tax would harm neither taxpayers nor pensioners, said Krkobabić.

He also stated that the pension system reform was finished with positive marks from all relevant international institutions, including the IMF.

For this reason, Krkobabić said he did not expect problems during as the IMF delegation arrives in May, for another revision of the EUR 2.9bn loan arrangement it has with Serbia.

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