KRSTIC: We should not behave as gambler who creates new debts to pay old ones

Lazar Krstic (Photo: YouTube/screenshot)

Finance Minister Lazar Krstic said Friday that the state had two priority tasks - to ensure financial stability of the country and healthy growth of the economy. At the closing ceremony of the two-day international conference "Kvantni Skok," Krstic noted that public debt was close to EUR 19 billion at the end of 2012, adding that it would reach EUR 21 billion at the end of 2013.

Krstic assessed that the situation in the economy sector was difficult, but he voiced his belief that it can be improved.

He said that the state had two priority tasks - to ensure financial stability of the country and healthy growth of the economy.

Closing the two-day international conference "Kvantni Skok," Krstic specified that it was necessary to make progress in five fields in order to achieve those goals.

As he explained, collection of taxes and excise taxes is a must, public sector has to be reformed, the problems of public companies in restructuring are to be solved finally, public debt growth has to be stopped, and a new business environment needs to be created. He also said that the last thing may be the most important.

Krstic explained that public debt would have to grow until it got to a sustainable level, adding that it would take three to four years to gradually reduce that debt.

Krstic pointed out that about EUR 1 billlion, that is, 10 percent of total government costs, were spent on interests.

- We cannot allow ourselves to behave as a gambler who borrows money from all friends and creates new debt to pay the old ones as we will eventually stay without both friends and money - said Krstic.