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New arrangement with IMF would not lead to pension cuts

28. February 2011. | 09:30

Source: Tanjug

Serbian Deputy Prime Minister Jovan Krkobabic stated on Sunday that closing a new arrangement with the International Monetary Fund (IMF) would not cause additional 'belt-tightening' and pension cuts with a view to further reducing public spending.

Serbian Deputy Prime Minister Jovan Krkobabic stated on Sunday that closing a new arrangement with the International Monetary Fund (IMF) would not cause additional 'belt-tightening' and pension cuts with a view to further reducing public spending.

“Pensions will be permanently on the rise to the extent the country's economic development and possibilities permit,” Krkobabic said in an interview for Tanjug and added that a new arrangement with the IMF could not lead to pension cuts in any way.

“Pensions are already low and can never again be called into question,” Krkobabic stated and pointed out that the IMF mission also agreed with this point during their latest visit to Belgrade, and assessed that Serbia carried out its pension and disability insurance reform in the best possible way.

“Head of the IMF delegation (Albert) Jaeger commended Serbia on this. Had we not tied pension raise to that of public sector salaries, we would have experienced an enormous social pressure,” Krkobabic said.

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