Friday, 27 March 2009

Serbia Economic Outlook

$4.1billion IMF Loan Agreed, Sharp Spending Cuts Ahead

  • March 26: The IMF reached a preliminary agreement with
    Serbia on a 3 billion euro ($4.1 billion) stand-by loan to help the Balkan
    nation shore up its finances during the global financial crisis. The new
    agreement will replace a $520 million stand-by loan approved in Jan 2009

  • The IMF deal calls for drastic cuts in public spending, a
    freeze in wages, pensions and hiring in the state sector, and the introduction
    of an additional 6% tax on salaries and pensions to contain the 2009 deficit to
    3% of GDP 
Source:RGE Monitor

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