Government to prevent crisis by adhering to fiscal rules and encouraging exports

Serbia must strictly obey fiscal rules and encourage exports in order to be ready for a potential new crisis, it was assessed at a meeting of the representatives of the Serbian government and monetary authorities on Wednesday.

Prime Minister Mirko Cvetkovic, who summoned that meeting, said that all economic developments in the region and Europe caused by the current disruptions in the global market must be carefully monitored in order to adequately respond to possible spread of the crisis to Serbia.

The meeting was attended by members of the government, representatives of the National Bank of Serbia (NBS) and the Fiscal Council, reads the statement issued by the Serbian government.

It was concluded that the adopted fiscal policy rules must be respected in order to maintain stability in the foreign exchange market and prevent potential risks that could affect the larger oscillations of the dinar.

In that sense, fiscal responsibility, savings and cuts in public spending must be respected at the republic, provincial and local levels.

The new precautionary arrangement that Serbia is going to sign with the International Monetary Fund (IMF) is essential, it was concluded.

- This arrangement would be a guarantee of macroeconomic stability, but also an indication that the Serbian government conducts a credible economic policy, which is a positive signal to all potential investors in Serbia - reads the statement.

The meeting also discussed the issue of liquidity in the financial markets, as well as the possibility to increase investments with appropriate interest rates.

The Serbian government and the NBS will hold meetings with businessmen and commercial banks to review their proposals and evaluate the current situation.

Vlada Republike Srbije

Narodna banka Srbije Beograd

Međunarodni monetarni fond - MMF Beograd