DINKIC: New measures for moderating the crisis, in March

Minister of economy and regional development of Serbia, Mladjan Dinkic, announced that the Government of Serbia would announce in March, new measures for moderating the effect of the world economical crisis.

- We are preparing additional measures for the companies dealing with problems now, but have been doing quite good before. We are thinking of multilateral compensation within the entire industry, in order to stop the chain of intercompanies debts, Dinkic stated to the Press.

He also said that he found very encouraging the first results of eocnomic measures of the Government of Serbia for moderating the crisis, and he expressed hid belief that the country would avoid recession in this year.

- I believe that Serbia will avoid the recession and that our commerce will have slightest growth, Dinkic said on presentation of the Draft for the law about regional development.

According to Dinkic, the situation with the world economical crisis was such that Serbia would objectively have smaller tax incomes than expected, but it cannot increase taxes as it doesn’t have whome to charge it.

- There are three things we will not do for sure. There will be no reduction of salaries and pensions and there will not be increase of VAT. We will reduce other expenses, but for that we will compensate with something larger loans under more favorable conditions, said Dinkic.

Minister also added that Serbia would have to accept larger budget deficit and that solution for that was in the loans from abroad.

- Considering the fact that international financial institutions have lowered the interest rates, and that public debt of Serbia is around 25% of the gross domestic product, which is very low, the solution for Serbia, at this moment is to get more loans in order to finance its deficit, said Dinkic.