Serbia is discussing with the International Monetary Fund cutting the work force in the state administration by five percent, a minister was quoted as saying on Tuesday, as the Balkan country pursues a new loan deal.
It follows the announcement last week by Prime Minister Aleksandar Vucic of pension and public sector wage cuts in an effort to curtail a budget deficit forecast at 8.3 percent of national output.
Serbia is expected to start full loan negotiations with the IMF after the government revises the 2014 budget later in September or early October.
“We are in talks with the IMF about cutting the number of employees in public sector by five percent,” Kori Udovicki, minister for state administration and local self management, was quoted as telling the Serbian daily Blic.
“We hope to be able to meet this demand to the largest degree as workers retire, but there are concerns that we will have to lay off 25,000 people.”
The IMF did not immediately respond to a written request from Reuters for confirmation.
Source; BUSINESS RECORDER
