Serbia’s Prime Minister Aleksandar Vucic said that announced austerity measures are necessary for Serbia to stabilise its finances and stimulate economic growth. Vucic said in an interview with Brussels-based portal “EU Today” that the austerity measures are only a small part of the plans for economic recovery, and expressed the hope that our country will establish a stable economic growth as of 2016.
He repeated that Serbia will not face bankruptcy because the government spends the money responsibly, adding that the adoption of laws on labour, privatisation and bankruptcy will regain the confidence of investors and creditors.
The Prime Minister recalled that Serbia is now borrowing at an interest rate of 9.5%, while previously interest rate stood at 13.9%.
Serbia has a large debt and high deficits, but the interest rates are now decreased because the Serbian government is seriously implementing reforms, he said.
Vucic said that Serbia still has to borrow, noting that the government’s plan is to stop the trend by 2017, reduce public debt and reduce the fiscal deficit to 3.2%.
He expressed the hope that the loan of the International Monetary Fund (IMF), which should be approved in October, will help make Serbia an attractive country for investors.
The government is doing everything to protect the most vulnerable citizens, said the Prime Minister and recalled that the salaries of less than RSD 25,000 will not be further taxed reports the Government.
Source; Balkans
