Serbia, IMF sign Agreement worth EUR3 bln
27. March 2009. | 08:06
Source: Beta
The International Monetary Fund (IMF) mission and the Serbian government reached an agreement on a credit stand-by arrangement in the amount of around EUR3 billion, which will last until April 2011, it was announced on March 26.
The International Monetary Fund (IMF) mission and the Serbian government reached an agreement on a credit stand-by arrangement in the amount of around EUR3 billion, which will last until April 2011, it was announced on March 26.
As a precaution, the new stand-by agreement will replace the current credit arrangement, which was granted in January 2009, and envisaged a withdrawal of EUR402.5 million.
Minister of Finance Diana Dragutinovic said that the Serbian government's economic policy will be adjusted to the economic crisis through a budget rebalance, which will be based on a change of tax policy and a reduction in budget payments.
She stated that the government planned RSD60 billion worth of budget savings, and a RSD40 billion rise in revenues by means of a tax increase.
Dragutinovic announced that a six percent tax will be levied on all monthly income exceeding RSD12,000, such as wages, pensions, temporary service contracts, fees, dividend payments and other income.
The budget rebalance will freeze wages and pensions in 2009 at the level of Dec. 2008, whereas previously it was envisioned that the pay of budget users could rise at most to the level of inflation.
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