Uzice, Dec.2, 2009 (Serbia Today) - National Bank of Serbia (NBS) Governor Radovan Jelasic said on Monday that the inflation figures for November are a result of the seasonal price increases in agricultural products, as well as oil prices.
Jelasic added that the annual inflation would not exceed 8% by the end of 2009 and that he hoped the inflation in 2010 would be reduced to 6% in the coming year according to Serbian news service Tanjug.
"Serbia's foreign debt is not a problem, but there is a problem with the speed at which new debts are acquired, because we raised our debt by another 7% of GDP in the first nine months of 2009, and if we were to continue at that pace, then we would be in danger of experiencing a debt crisis," Jelasic remarked.
Jelasic later added that Serbia would not enter a debt crisis due to the arrangement it had with the International Monetary Fund (IMF), which have bound the government to reduce public spending, freeze salaries and pensions, which should then prevent new debts.
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