Japan and Romania to...

Japan and Romania are planning to jointly invest significant sums, potentially "trillions of...

Romania: Romgaz plans acquisition...

Romania’s state-owned natural gas producer and supplier, Romgaz, is considering the acquisition of...

Romania: Monsson Group proposes...

A subsidiary of Monsson Group has submitted a proposal for a major battery...

Romania aims to revitalize...

After a decade of slow growth, Romania is now set to significantly boost...
Supported byClarion Energy banner
HomeUncategorizedSerbia, IMF tighten...

Serbia, IMF tighten deficit target amid crisis

 

Serbia will aim to cut its 2012 budget deficit to offset the negative effects of the eurozone crisis, an International Monetary Fund delegation said Wednesday.

Serbia will aim to get the budget deficit next year down to 4.25 percent of GDP, lower than this year’s budget gap of 4.5 percent, said Mark Allen, the mission chief.

Allen explained that the adjustment was made “in the context of the slower growth which is caused by the turbulence in the eurozone.”

Finance Ministry official Dusan Nikezic described the move as “the first substantial measure ahead of upcoming challenges.”

The IMF delegation has approved the first review of a precautionary loan deal for Serbia that envisages that the country can draw on euro1.1 billion ($1.4 billion) in rescue loans if needed. Officials say they don’t intend to withdraw the first euro190 million ($257 million).

“The arrangement with the IMF is extremely important for Serbia in the turbulent conditions and a clear signal that the government is acting cautiously,” Nikezic said.

Allen said that Serbia — which depends on exports and investment from the eurozone — will be affected by the fact that no growth is expected there next year.

But he said the country has “buffers to draw upon,” including its foreign currency reserve, liquid banking system and the IMF loan.

“It is possible things could get worse” in the eurozone, Allen said, adding this would call for “additional measures.”

Serbia’s growth this year is still projected at 2 percent, but it will slow to 1.5 in 2012 “with risk to downside,” Allen said.

Serbia’s previous agreement with the IMF — which expired in April — was worth euro2.9 billion ($4.18 billion) and it withdrew some euro1.5 billion ($2.16 billion) from the total credit line.

The approval of the first installment of the new deal is conditioned on the submission of the 2012 budget before being approved by the IMF board.

 

 

 

 

Supported byOwner's Engineer banner

Recent News

Supported byspot_img
Supported byspot_img

Latest News

Supported byspot_img
Supported bySEE Energy News

Related News

FBiH: Net electricity production reached 473 GWh in June

Net electricity generation in the Federation of BiH fell to 473 GWh in June 2024 from 582 GWh in the same month last year, according to the data published by the statistical office. In the same period, electricity imports increased to 126 GWh...

Croatia: JANAF buys 5.2 MW solar park

Croatian oil pipeline operator JANAF has indirectly acquired the Bulinac solar photovoltaic power plant with an installed capacity of 5.18 MW as part of its diversification strategy, the company said in a filing to the Zagreb stock exchange.The acquisition of this...

Serbia: Banatski Dvor gas storage expansion to begin in October

Serbia will start works to expand the Banatski Dvor natural gas storage facility in October, according to Dusan Bajatovic, head of natural gas importer and distributor Srbijagas.The expansion works are expected to be completed in 18 months, Bajatovic said in...
Supported bySEE Mining News
error: Content is protected !!