Serbian citizens owe to banks EUR 560 on average

Belgrade, June 26. (Serbia Today) - Average credit debt of Serbian citizens has reached EUR 560, while the delay in payment of loans is increasing every month by 0.1 percent, shows data which were presented on Monday. Although the General Secretary of the Association of Serbian Banks Veroljub Dugalic said the numbers were “still not alarming”, the delay in paying back loans represents “a worrying tendency which could represent a serious problem in the long run”, he added. Even before the global economic crisis there was a delay of 1.2 percent in the repayment of debts, so the present trend should not be cause for worry, Dugalic noted. He pointed out that loans which were taken out for refinancing demonstrate the fastest growth and that people raise them so as to consolidate other debts into one loan, or to pay off the incoming obligations.
 

Dinar dropped again

Belgrade, June, 25 2010. (Serbia Today) - The value of the Serbian dinar (RSD) today dropped by another 0.17 percent. This came despite the National Bank of Serbia (NBS) intervention in the foreign exchange market worth EUR 20mn. The official exchange rate is RSD 103.7247 for one euro today, according to the central bank.  The NBS on Thursday sold EUR 20mn in the interbanking foreign exchange market in order to reduce the excessive oscillation of the exchange rate. Since the beginning of the year, the NBS has sold a total of EUR 1.208bn, including yesterday's transaction. The NBS announced this week that its foreign exchange reserves dropped by EUR 37.1mn in May and amount to about EUR 10.7bn at the end of May, while the nominal value of the domestic currency dropped 3.4 percent in the same period.

Minister Dinkic: No VAT increase in next two years

Belgrade, June 24. 2010. (Serbia Today) - VAT and payroll taxes will not be changed in the next two years, according to the statement of Serbian Minister of Economy and Regional Development Mladjan Dinkic "Taxes will not be changed by the end of this government's mandate," announced Dinkic on Monday. The reason for the Dinkic’s reaction was the announcements of the Finance minister Diana Dragutinovic of reducing the payroll taxes and increasing expenditure taxes. Dinkic said that the statement made by Finance Minister should be understood in a long-term context, adding that the idea is not so bad. "But, in view of the present situation and a relative acceleration of the revival of the Serbian economy, nothing should be changed now, but we should possibly think about it until after the economic crisis," concluded Dinkic.

No official decision on bonuses for public sector employees

Belgrade, June, 22. 2010. (Serbia Today) - The government has yet to pass the decision on paying bonuses to public sector employees, which would probably happen in the fall, Serbian medias reported. There were no talks of the bonuses yet in the government, and it is expected to wait until the budget is rebalanced, which is expected to occur in September. “In the letter of intent with we sent last week to the International Monetary Fund (IMF), we announced that the bonuses would be paid by the end of the year,” sources from the government stated, adding that public sector workers and pensioners will not get the bonuses at the same time. It is not yet known who will receive the bonuses first. Public sector employees with wages of RSD 40,000 (about EUR 400) per month will receive a bonus of RSD 5,000, while pensioners who receive RSD 15,000 a month can expect a bonus of RSD 3,000. Similar bonuses are expected to be paid in early 2011 as well. A budget deficit of about RSD 140bn is expected after the rebalance. “We will discuss the document with officials of the Fund, who will be in Belgrade on August 20, and the new plan for the state budget will include more money for poorer municipalities as well,” the government sources said. About RSD 1bn from the most successful state companies is expected to be paid to 46 of the most poverty-stricken municipalities in Serbia

Jelasic: International context of Serbian currency weakening

Belgrade June 21. 2010. (Serbia Today) - Outgoing NBS Governor Radovan Jelašić says the weakening of the Serbian dinar was the result of events in the international arena. The slide was also influenced by the weakening of domestic currencies in Hungary, Poland and Turkey, he disclosed. “If the dinar depended solely on the situation in Serbia, it should be strengthening to a certain extent because we have signed an agreement with the International Monetary Fund, additional funds have been provided, salaries and pensions are frozen, and prices are stable”, Jelašić opined during the presentation of the latest issue of Kvartalni Monitor (Quarterly Monitor) magazine. “The foreign exchange market is stable, too, so if we look only at the events here, they are positive, but obviously everything that comes from abroad is prevalent at the moment, which is why there was a certain weakening of the dinar in the recent period”, the governor said. “I am convinced that if we manage to continue with implementing the restrictive policy, we should see a somewhat stronger dinar, but things do not depend only on our internal conditions, as the dinar is now largely tailored by external factors”, he said.  The NBS foreign exchange reserves of around EUR 10.7 billion are sufficient to prevent any major fluctuations in the daily exchange rate and provide enough transactions on the interbank foreign exchange market, but the exchange rate will still be determined according to the situation on the market, said Jelašić. After the Thursday NBS intervention of EUR 80mn, the dinar ended its six-day slide against the euro and strengthened by 0.46 percent, so the official exchange rate on Friday was RSD 103.4627 for one euro.
 

Serbian government debt reached 10,5bn E

Belgrade, June, 18. 2010 (Serbia Today) - Serbia's government debt reached EUR 10.54bn at the end of May, which is 31.9 percent of the GDP, the Finance Ministry announced. Serbia's public debt aggregated to EUR 9.85bn at the end of 2009, which means that it was increased by EUR 691mn during the first five months of 2010, the ministry's website said. At the end of April 2010, Serbia's national debt was EUR 10.39bn, which means that during May it augmented for around EUR 150bn. Serbian direct liabilities totaled EUR 9.13bn at the end of May, with the internal and external debt reaching EUR 4.22bn and EUR 4.91bn respectively. The country's contingent liabilities totaled EUR 1.41bn at the end of May 2010. Serbia's government debt amounted to EUR 8.78bn at the end of 2008, which was 25.6 percent of the GDP.

Milosavljevic: Increase in electricity prices would be immoral

Belgrade, June 16. 2010. (Serbia Today) Trade Minister Slobodan Milosavljević said that an increase in electricity prices at this moment would be immoral toward the citizens. He said that at a time when pensions and wages are frozen, it would be wrong to increase electricity prices. Serbian Electric (EPS) announced recently that it would ask the government to approve a price hike in the fall. “My stance is that I will be against an increase in electricity prices until the end of the year if wages and pensions stay froze,” Milosavljević said. EPS General Director Dragomir Marković said on Friday that the company has not backed down from its demand for one more price increase by the end of the year. He said that the conditions for this have already been met, adding that the EPS would ask for prices to be increase by 20 percent.