Ekonom:east Media Group successfully organized the Second Annual Summit: Southeastern European Central Bankers and Ministers of Finance,  at Hotel Splendid in Becici, Montenegro.

The event was organized with the institutional support of the Central Bank of Montenegro and was opened by the Governor of the Central Bank of Montegro, Mr. Ljubisa Krgovic.

This regional event hosted ministers of finance and governors of central banks from five countries in the region, including Montenegro, Serbia, Bosnia & Herzegovina, Albania and FYRMacedonia, as well as the European Investment Bank.

Participants at the forum will exchange experiences on revenues and expenditures of the budgets in times of crises, public expenditures, public debt, challenges of fiscal policy in crisis, road to EU “Greek scenario” and countries in the region, relations of fiscal and monetary policy after the recession.

Summit will be opportunity participants to exchange opinions on structural reforms, effects of Vienna treaty, influence of the global crisis and other financial issues

One of the main preconditions for successful economic policies that encourage the growth of gross domestic product of Southeast Europe is the discipline of public finance, said the governor of the Central Bank of Montenegro, Ljubisa Krgovic in his opening remarks.

"Although countries have differences in their economies, all of them are similar in that they are small, open economies, dependent on EU markets.

Every economic policy maker has the responsibility for national economic policy, but only by acting together, will we succeed to the greatest extent. As the economies of the region are recovering, the biggest challenges for economic growth will be in the reduction of fiscal incentives and conduct of less expansionary monetary policy in order to avoid pressure on prices," said Krgović.

Igor Luksic-Our goal is to have a budget surplus by 2013
Reduction of salaries in the public sector was a difficult but necessary move, said Igor Luksic, Deputy Prime Minister and Minister of Finance in Montegro, regarding the measures that the Government of Montenegro carried out last year to cope with the crisis.

At the summit, he said that the Montenegrin government has done enough to reduce public spending, but that there is much still to be done.

The objectives of the Government to reduce public spending and public debt to 32 percent of GDP and a shift from deficit to budget surplus by 2013, he said.

Luksic said that the region of Southeast Europe has the greatest potential for growth across Europe and the countries of the region have a great chance for success if they succed in implementing reforms in the pension, health and education, and raising competitiveness and their credit rating.

FinMin Dragutinovic: Serbia’s budget solvent despite deficit

Minister of Finance Diana Dragutinovic said today in Becici that privatisation this year is expected to bring around €1.7 billion in revenues, while the sale of mobile operator Telekom Srbija alone will bring more than €1.5 billion.

Dragutinovic announced that revenues from privatisation in this and next year, excluding the Telekom Srbija sale, should bring almost RSD 40 billion.

The Minister confirmed that the budget has considerable reserves of €600 million and is solvent, despite a deficit.