The president of the Union of Serbian Economists, Aleksandar Vlahovic, believes that enough money has been provided for businesses to function. Faculty of Economics in Belgrade professor Dragan Djuricin says the measures are necessary in the economic break, and tax experts say the measures have arrived at the right time.
The president of the Union of Serbian Economists, Aleksandar Vlahovic, said on the package of state aid measures to the economy, that one of the most important things was that the state provided enough money to guarantee that the companies would be able to continue functioning.
“The most important measure of this anti-crisis program is the massive pumping of liquidity and the return of confidence that must exist between the states – the financial sector – the real sector, which appears through the guarantee scheme for loans to the economy”, President of the Union of Economists of Serbia Aleksandar Vlahovic told Tanjug.
According to him, banks are liquid at the moment and have liquid assets, but it is logical that lowering that liquidity towards the economy will flow much harder, and forming a guarantee scheme will allow liquidity from the level of banks to be lowered to the level of the economy.
The amount of two billion euros, he says, will allow banks to make payments through loans to businesses who need them most.
“This does not mean, at the same time, an increase in the total budget deficit by this amount, because it is a loan that will be used by commercial banks, and most of the guarantees will be given by the state of Serbia”, Vlahovic said, adding that the scheme would increase the total public debt, but not by the absolute amount of support, RTS reports.
