JELAŠIĆ: Emergency measures for budget savings

The Governor of the National Bank of Serbia (NBS), Radovan Jelašić, said on March 20th that the main theme of the negotiations with the International Monetary Fund (IMF) about new credit arrangement was the selection of the best option for better collecting of budget incomes and reduction of public consumption.

- The Government of Serbia should decide for the best way for achievement of budget savings, but it is most important that they make the decision in as short time as possible - Jelašić said at the conference on economic crisis, which was organized by weekly magazine "Vreme" and Foundation "Fridrih Ebart".

He said that, even if the foreign investments in Serbia in 2009 amounted to 1.5 billion EUR, about 3 billion EUR would be needed for the payment deficit to be covered.

- The deficit in the budget of Serbia will amount to about 90 billion RSD if Serbia and IMF agree to increase that deficit from earlier 1.75% to 3% of gross national product – Jelašić pointed out.

Commenting on the proposals for introduction of some kind of emergency tax, Jelašić said that such measures had to be efficient and easily applicable.

- It is also important if that is going to be the only or one of the measures that the Government plans to introduce – said Jelašić.

The Governor said that Serbia was not threatened by bankruptcy, but that we should not expect the crisis to be over before year 2011.

Narodna banka Srbije Beograd

Međunarodni monetarni fond - MMF Beograd

IMF Washington D.C.

Vlada Republike Srbije

NP VREME d.o.o. Beograd

Radovan Jelašić

National Bank of Serbia

NBS

International Monetary Fund

IMF

Government of Serbia

Fridrih Ebart

weekly magazine Vreme