Representatives of the Government of Serbia agreed with the representatives of the International Monetary Fund that they would carefully monitor state revenues and expenditures.
The IMF mission stressed in its report that state support for troubled state-owned companies, such as Air Serbia, should be conducted in a transparent manner.
Technical assistance of the Fund for monitoring possible losses on bank loans supported by state guarantees has been proposed.
The IMF emphasized the need to maintain timely payments to suppliers and to monitor and resolve all arrears, including arrears to public companies EPS and Srbijagas.
As it is added, the Government of Serbia also claims that negotiations on a strategic partnership for Petrohemija are underway and that a solution is expected this year.
The IMF representatives reiterated the risks related to the long-term sustainability of the company and encouraged the authorities to conduct the tender as soon as possible.
A “PURPOSE” of the pandemic bypassed EPS
The authorities consider the impact of the pandemic on the liquidity of the Electric Economy of Serbia (EPS) temporary, noting that the collection was relatively good despite the delayed payment of electricity bills during the state of emergency.
It was also confirmed that the launch of a tender for the assessment of EPS’s assets (end of December 2019 RT), which is the next step to turn that public company into a joint stock company, can still be carried out by the end of 2020.
According to the report, the IMF encouraged the Government to complete the planned assessment of electricity tariffs as soon as possible by the end of the year.
This is necessary to cover costs, including tonnes incurred due to greater reliance on renewable energy sources and the need to invest to protect production capacity.
The assessment should also consider the potential impact on vulnerable households. Authorities planned to complete the assessment by July, allowing for a possible adjustment of tariffs by the end of September 2020.
The Government of Serbia also emphasized that it continues to look for strategic investors for investing in the Methanol-Vinegar Complex in Kikinda (MSK).
It is also stated that the tender for the privatization of the bus company Lasta, whose need was previously emphasized by the IMF, has been postponed, Nova Ekonomija reports.
