VUJOVIC: Serbia wants a three-year agreement with IMF

The Minister of Economy, Dusan Vujovic, said that this year, Serbia wants to achieve with the International Monetary Fund (IMF) an agreement of three-year loan which would contribute to implementation of objectives with respect to governmental debt and budget deficit.

Vujovic, who is also an acting minister of finance, in his talks with the Blumberg agency, explained that this would facilitate decrease of consumption and cushion budgetary savings consequences.

The Minister added that Serbia wants to continue talks with IMF, hoping it will end successfully by the end of September of beginning October. It would, as he said, merge with the moment of confirming governmental budget rebalance for 2014 and budget for 2015.

He said that negotiations with IMF would be the chance to consider monetary policy mild approach and that IMF is asked to “loosen a bit with some of monetary instruments”. Milder monetary policy, as Vujovic adds, would be fine in extremely low inflation level of 1,3%.

The Minister says the Government should generate a total savings of EUR 1,4 billion during three years so that the loss would decrease to a billion.

Speaking about the recent minister, Lazar Krstic ,which resigned on Saturday, Vujovic said Krstic was for reforms based on politics, under his control. That kind of an approach, according to minister’s words, decreases fiscal risks but it does not have to be always politically and socially feasible.

- I would like to expand political consultancy and coordination framework. I would like to gather all interested parties which represent different groups, which will have to absorb the burden of reforms during the next two or three years or to face vague perspective in many years to come – Vujovic explained.

Vujovic said that his plan is “equally credible” but socially “feasible” program which would decrease deficit for EUR 500 mil annually by 2017.