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IMF & Dinkic: Devaluation of salaries has to end

27. August 2010. | 09:49

Source: Tanjug

Minister of Economy and Regional Development Mladjan Dinkic stated that Serbian representatives and the mission of the IMF have not concluded the talks about a possible increase in salaries and pensions, because "devaluation of salaries in Serbia has to end."

Minister of Economy and Regional Development Mladjan Dinkic stated that Serbian representatives and the mission of the IMF have not concluded the talks about a possible increase in salaries and pensions, because "devaluation of salaries in Serbia has to end."

"The salaries of two million people in Serbia are on a constant decrease," Dinkic told at the opening of the Centre for rehabilitation and employment of people with disabilities, and assessed that a 1.5 percent GDP growth "is not a lot," but allows "a moderate unfreezing" of salaries and pensions.

However, Dinkic pointed out that everything will be clearer, when the talks between representatives of the Serbian government and the IMF mission will be completed.

The minister assessed that if salaries continue to drop, "the Serbian economy cannot be expected to progress, let alone some other sectors such as catering and construction". He stated that one should not underestimate the effects of domestic demand and that Serbia should live within its means.

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