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Expensive borrowing by Serbia in order to preserve the illusion of economic growth

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Participants in the online forum “Pandemic and Economy – Reality Behind the Numbers” also assessed that Serbia borrowed on far more unfavorable conditions, because the EU loan requires full transparency and control of spending, and the government did not want to accept “cheaper” money.
Interlocutors in the series “Finally a Useful Debate” organized by the National Coalition for Decentralization this week were Rasa Karapandza, a professor at the University of Wiesbaden, Biljana Stepanovic, editor of Nova Ekonomija, and Tanja Jakobi, an analyst at the Center for Public Policy Research, moderated by Antonela Riha.
Professor Karapandza pointed out that it is necessary for the state to primarily lead to a state in which life is slowly returning to normal, and not so abruptly. He estimates that the epidemic should be kept under control as an essential problem, and that the rallies will lead to its flare-up. All that, he says, also affects foreign investors.
Speaking about the measures for economic recovery, the editor of Nova ekonomija, Biljana Stepanovic, concluded that the loans of the Development Fund are extremely favorable, but she is skeptical about how they will be distributed.
Karapandza and Stepanovic also assessed that Serbia borrowed under far more unfavorable conditions, because the EU loan requires complete transparency and control of spending, and the government did not want to accept “cheaper” money.
Tanja Jakobi, an analyst at the Center for Public Policy Research, believes that the distribution of 100 euros to every adult citizen is meaningless, but, despite that, they should be taken.
However, those who are optimistic in this country are, according to Jakobi, workers in health care, shops, transportation, and that they should certainly receive better valued salaries.
The interlocutors agreed that 100 euros of assistance to adult citizens is not an economic, but a political measure. Instead of populist moves, the only path that leads Serbia in the right direction would be institution building and the rule of law, they concluded.
During the debate, an online poll “What are your expectations from the Serbian economy in 2021?” Was conducted, to which 91% of viewers answered, “it will be worse”, and 9%, “It will be the same”. As they say from the NKD, no spectator answered that it would be better, Juzne Vesti reports.

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