Belgrade, March, 16. 2010 (Serbia Today) – The Serbian Statistics Office stated that in the fourth quarter of 2009 the average monthly budget per household in Serbia stood at RSD 47,582.
The statement adds that 94.9% of the total available funds is monetary income and 5.1% is income in kind. The largest share in monetary income is recorded with citizens with regular jobs, ie 45.8%, and 33.8% with pensioners. Personal expenses in households in Serbia amounted to RSD 44,886, of which the largest part was spent on food and non-alcoholic beverages (40.7%).
Monday, March 22, 2010
Friday, March 19, 2010
Infrastructure development necessary for fast growth
Kopaonik, March 13. 2010 (Serbia Today) – Minister for the National Investment Plan (NIP) Verica Kalanovic said that all post global economic crisis development models for Serbia make infrastructure development a priority and a necessity for quicker growth.
In a statement to Tanjug news agency from the Kopaonik Business Forum 2010 Kalanovic said that from this year on only infrastructure projects will be financed with NIP funds and no financing will be provided for maintenance costs, equipment, consulting, subsidies and soft loans. Compared to 2009, the number of NIP projects has been reduced and procedures almost identical to World Bank procedures are being followed, said Kalanovic. She said that this year around RSD 26 billion will be at the NIP’s disposal, of which sum RSD 15.5 billion is from the budget and RSD 10 billion from the European Investment Bank’s project loan. Kalanovic stressed that a new model for project realization and management is needed, namely one that implies partial management modernization at the central level, through the work of ministries and the transformation of certain institutions. The Minister said that the realization of projects in Serbia is still slow, even though progress was achieved both in 2009 and 2010. She also emphasized that the government goal is to create preconditions to enable project realization over a few months, starting from the day when the funds are approved.
In a statement to Tanjug news agency from the Kopaonik Business Forum 2010 Kalanovic said that from this year on only infrastructure projects will be financed with NIP funds and no financing will be provided for maintenance costs, equipment, consulting, subsidies and soft loans. Compared to 2009, the number of NIP projects has been reduced and procedures almost identical to World Bank procedures are being followed, said Kalanovic. She said that this year around RSD 26 billion will be at the NIP’s disposal, of which sum RSD 15.5 billion is from the budget and RSD 10 billion from the European Investment Bank’s project loan. Kalanovic stressed that a new model for project realization and management is needed, namely one that implies partial management modernization at the central level, through the work of ministries and the transformation of certain institutions. The Minister said that the realization of projects in Serbia is still slow, even though progress was achieved both in 2009 and 2010. She also emphasized that the government goal is to create preconditions to enable project realization over a few months, starting from the day when the funds are approved.
Wednesday, March 17, 2010
Serbia needs 2 pct. GDP growth
Kopaonik, March 11, 2010 (Source: Tanjug) - PM Mirko Cvetkovic told the Kopaonik business forum that country cannot get out of the economic crisis without a GDP growth of over 2 percent. He added that the key challenges in 2010 will be to stop the increase in unemployment, revive domestic demand and achieve macroeconomic stability.
“ If we do not achieve a growth higher than 2 percent, this year will be similar to the year of the crisis and we will have no sense of improvement”, said Cvetkovic, Nothing that the country needs a continuous growth of 5 to 6 percent annually for it to move forward. The prime minister said that there is no reliable data that would suggest with certainty that Serbia has come out of the crisis, but that there are a number of indicators for that, like the 31 percent increase in export in the first two months of 2010, which inspires optimism.
According to Cvetkovic, stimulating export oriented sectors of the economy, attracting strategic investors and improving Serbia”s rating are also key to the country's economic recovery. The government goals in 2010 will be to strengthen economic activity, maintain stability of the Serbian dinar, reduce public spending, prevent an increase in poverty, continue the public sector reform, work on harmonization with European standards and fight crime and corruption. Cvetkovic pointed out that the 3,7 percent growth in industrial production in January,the said high increase in export and the 1,5 percent growth of the composite index also in January all point to positive trends since the start of 2010 and signal a signal a growth of GDP.
The negative indicators, according to Cvetkovic, are the fact that budget revenue was lower than had been planned for the first two months of this year and the continued drop in domestic demand over the same period. Cvetkovic stressed that the government has no trouble formulating the economic policy, but that it has problems coping with conflicting interests that appear as part of that model, and he asked for assistance from companies and economic experts in dealing with those. As an example, Cvetkovic stated the government’s intention to raise demand while reducing public spending, which is the prime source of demand. As another example of such conflicts, he described the necessity to improve the living standard and increase salaries while maintaining a restrictive budget. Cvetkovic announced over RSD 160BN of investments by the government and public enterprises in 2010, a RSD 4 BN fiscal stimulus to support the construction and purchase of new apartments, measures to stimulate export and support in conquering new markets.
“ If we do not achieve a growth higher than 2 percent, this year will be similar to the year of the crisis and we will have no sense of improvement”, said Cvetkovic, Nothing that the country needs a continuous growth of 5 to 6 percent annually for it to move forward. The prime minister said that there is no reliable data that would suggest with certainty that Serbia has come out of the crisis, but that there are a number of indicators for that, like the 31 percent increase in export in the first two months of 2010, which inspires optimism.
According to Cvetkovic, stimulating export oriented sectors of the economy, attracting strategic investors and improving Serbia”s rating are also key to the country's economic recovery. The government goals in 2010 will be to strengthen economic activity, maintain stability of the Serbian dinar, reduce public spending, prevent an increase in poverty, continue the public sector reform, work on harmonization with European standards and fight crime and corruption. Cvetkovic pointed out that the 3,7 percent growth in industrial production in January,the said high increase in export and the 1,5 percent growth of the composite index also in January all point to positive trends since the start of 2010 and signal a signal a growth of GDP.
The negative indicators, according to Cvetkovic, are the fact that budget revenue was lower than had been planned for the first two months of this year and the continued drop in domestic demand over the same period. Cvetkovic stressed that the government has no trouble formulating the economic policy, but that it has problems coping with conflicting interests that appear as part of that model, and he asked for assistance from companies and economic experts in dealing with those. As an example, Cvetkovic stated the government’s intention to raise demand while reducing public spending, which is the prime source of demand. As another example of such conflicts, he described the necessity to improve the living standard and increase salaries while maintaining a restrictive budget. Cvetkovic announced over RSD 160BN of investments by the government and public enterprises in 2010, a RSD 4 BN fiscal stimulus to support the construction and purchase of new apartments, measures to stimulate export and support in conquering new markets.
Tuesday, March 16, 2010
Employees of SIK Kopaonik get their first salaries after production recovery
Kursumlija, March 10, 2010 (Serbia Today) – Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said in Kursumlija today that €8 million will be invested in the Forestry and Industrial Complex (SIK) Kopaonik by autumn. At the initiative of the Ministry of Economy and Regional Development, the production in this company was restarted in February and thus 300 workers of the company got their first salaries after more than 20 months. By the end of March, this company will also receive a loan from the Development Fund, on the basis of a recently adopted programme of the Serbian government for production revival and employment in economically devastated areas of Serbia, the Minister said after visiting SIK Kopaonik. He recalled that Kursumlija belongs to a group of 40 municipalities in Serbia whose level of development is approximately 50% of the republic’s average. The Ministry of Economy and Regional Development has earmarked €100 million for the promotion of balanced regional development through the revival of production and employment in the poorest municipalities in Serbia, he said. He said during his visit to Kursumlija that a great opportunity for the development of this part of Serbia lies in spa tourism, which is confirmed by resorts such as Prolom and Lukovska Banja which have great potential. However, Kursumlijska Banja has not been in operation for 15 years and a tender will be called to invite investors to cooperate with the state to revive it, said Dinkic.
The offer will include a debt write-off and the state will be a partner in the new company, while the renovation of the hotel will be the investor’s obligation, he explained. An agreement should also be reached with pension and disability insurance funds and trade unions which would use the services offered by the resort, he said. Since there are plans for beginning the construction of a motorway from Nis to Prokuplje next year and Djavolja Varos is a big tourist attraction, I think we must revive resorts and spas. The state will work on the infrastructure and provide personnel qualified for running resorts, he said.
The offer will include a debt write-off and the state will be a partner in the new company, while the renovation of the hotel will be the investor’s obligation, he explained. An agreement should also be reached with pension and disability insurance funds and trade unions which would use the services offered by the resort, he said. Since there are plans for beginning the construction of a motorway from Nis to Prokuplje next year and Djavolja Varos is a big tourist attraction, I think we must revive resorts and spas. The state will work on the infrastructure and provide personnel qualified for running resorts, he said.
Thursday, March 11, 2010
Serbia, Algeria to improve economic cooperation
Belgrade March 04, 2010 (Serbia Today) – Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and Algerian Minister for Water Resources and Co-Chairperson of the joint committee for economic cooperation with Serbia Abdulmalek Sellal stated on Tuesday that Serbia and Algeria must improve economic cooperation.
Dinkic, who is heading a Serbian delegation on a three day visit to Algeria, said during talks that cooperation should be restored to the level at which it was during the 1980s, when as a member of the Non-Aligned Movement, Algeria was one of former Yugoslavia’s top economic partners. Speaking at a meeting, which was also attended by representatives of Algerian and Serbian businesses in the area of water resources, Dinkic stressed that the Serbian delegation’s visit is a great opportunity for Serbian companies to work in Algeria, which is one of the richest North African countries and is planning to start a $150 billion, four year, investment cycle. The Serbian delegation also includes Defense Minister Dragan Sutanovac and Minister of Youth and Sports Snezana Samardzic-Markovic, who met today with their Algerian counterparts. During this visit, Dinkic will meet with Algerian Prime Minister Ahmed Ouyahia, and he will also have separate meetings with five ministers and the governor. The Serbian business delegation is represented by some 60 representatives of leading Serbian companies. A business forum will be held tomorrow at which businessmen of the two countries will discuss future cooperation. The football national team of Serbia also arrived to Algeria together with the Serbian state delegation and they will play a friendly match with the Algerian national team tomorrow.
Dinkic, who is heading a Serbian delegation on a three day visit to Algeria, said during talks that cooperation should be restored to the level at which it was during the 1980s, when as a member of the Non-Aligned Movement, Algeria was one of former Yugoslavia’s top economic partners. Speaking at a meeting, which was also attended by representatives of Algerian and Serbian businesses in the area of water resources, Dinkic stressed that the Serbian delegation’s visit is a great opportunity for Serbian companies to work in Algeria, which is one of the richest North African countries and is planning to start a $150 billion, four year, investment cycle. The Serbian delegation also includes Defense Minister Dragan Sutanovac and Minister of Youth and Sports Snezana Samardzic-Markovic, who met today with their Algerian counterparts. During this visit, Dinkic will meet with Algerian Prime Minister Ahmed Ouyahia, and he will also have separate meetings with five ministers and the governor. The Serbian business delegation is represented by some 60 representatives of leading Serbian companies. A business forum will be held tomorrow at which businessmen of the two countries will discuss future cooperation. The football national team of Serbia also arrived to Algeria together with the Serbian state delegation and they will play a friendly match with the Algerian national team tomorrow.
Serbia successfully implements interim trade agreement with EU
Belgrade, March 04, 2010 (Source: serbiangov.rs) – Deputy Prime Minister for EU integration Bozidar Djelic stated at the first session of the Committee for Implementing the Interim Agreement on Trade and Trade Related Issues with the EU that Serbia has been successfully implementing the agreement for 14 months.
Djelic, who chaired the first session together with Director for Western Balkans in the European Commission's Directorate General for Enlargement Pierre Mirel, said that this is a huge success for the Serbian government and Serbian citizens. He said that today Serbia has formally established the contractual-partner relation with the EU, adding that European and Serbian interests have been contemplated and compared for the first time at the session. The interests of Serbian producers will be protected from now on in the EU market in the same way in which European producers are protected in Serbia, Djelic said adding that the meeting also looked at trade with the EU and fulfilling tariff quotas for Serbian exports. The Deputy Prime Minister recalled that Serbia exports 80% of its goods to the EU, while over 75% of imported goods in Serbia come from the EU. Even so, there was a fall of 25% in the trade volume with the EU in 2009, Djelic said adding that the crisis did not affect the agricultural sector, in which Serbia made a surplus. He also stressed that Serbia is the only country in central and south-eastern Europe to have attained a surplus in agricultural exchange with the EU in 2009, which doubled in comparison with 2008. The quota allocated for the export of baby beef from Serbia to the EU has not been fulfilled, since only 12% of the total approved amount was exported, while 8% of the quota was used for the export of wine and the export of fish was also below the quota.
Djelic said that only export quotas of over 180,000 tonnes have been met for sugar. He said that it is not understandable that Serbia has the same quota for sugar exports as Croatia, since Croatia produces less sugar. The Serbian Deputy Prime Minister said that the citizens of Serbia seeking political asylum in EU countries will be returned to Serbia in accordance with the agreement on readmission, while the organizers of such transport will be punished. Djelic said that Serbia will not tolerate those who through their actions want to jeopardise the crucial freedom of all citizens of Serbia. He said that an attempt to abuse of the liberal laws of Belgium with regard to political asylum in no way implies the action of the state. The Deputy Prime Minister reiterated that Serbia was aware of the fact that the liberalisation of visa regime is not only a privilege but also an obligation. Mirel said that people who abuse the possibility to travel without visas hamper the reputation of Serbia, and reiterated that travel without visas does not imply a work permit. He said that there is a large number of people misusing this circumstance, which indicates that there is an organised group behind. Political asylum is sought by people who come from non-democratic countries and Serbia is a democratic country, concluded Mirel.
Djelic, who chaired the first session together with Director for Western Balkans in the European Commission's Directorate General for Enlargement Pierre Mirel, said that this is a huge success for the Serbian government and Serbian citizens. He said that today Serbia has formally established the contractual-partner relation with the EU, adding that European and Serbian interests have been contemplated and compared for the first time at the session. The interests of Serbian producers will be protected from now on in the EU market in the same way in which European producers are protected in Serbia, Djelic said adding that the meeting also looked at trade with the EU and fulfilling tariff quotas for Serbian exports. The Deputy Prime Minister recalled that Serbia exports 80% of its goods to the EU, while over 75% of imported goods in Serbia come from the EU. Even so, there was a fall of 25% in the trade volume with the EU in 2009, Djelic said adding that the crisis did not affect the agricultural sector, in which Serbia made a surplus. He also stressed that Serbia is the only country in central and south-eastern Europe to have attained a surplus in agricultural exchange with the EU in 2009, which doubled in comparison with 2008. The quota allocated for the export of baby beef from Serbia to the EU has not been fulfilled, since only 12% of the total approved amount was exported, while 8% of the quota was used for the export of wine and the export of fish was also below the quota.
Djelic said that only export quotas of over 180,000 tonnes have been met for sugar. He said that it is not understandable that Serbia has the same quota for sugar exports as Croatia, since Croatia produces less sugar. The Serbian Deputy Prime Minister said that the citizens of Serbia seeking political asylum in EU countries will be returned to Serbia in accordance with the agreement on readmission, while the organizers of such transport will be punished. Djelic said that Serbia will not tolerate those who through their actions want to jeopardise the crucial freedom of all citizens of Serbia. He said that an attempt to abuse of the liberal laws of Belgium with regard to political asylum in no way implies the action of the state. The Deputy Prime Minister reiterated that Serbia was aware of the fact that the liberalisation of visa regime is not only a privilege but also an obligation. Mirel said that people who abuse the possibility to travel without visas hamper the reputation of Serbia, and reiterated that travel without visas does not imply a work permit. He said that there is a large number of people misusing this circumstance, which indicates that there is an organised group behind. Political asylum is sought by people who come from non-democratic countries and Serbia is a democratic country, concluded Mirel.
Tuesday, March 9, 2010
Prime Minister Mirko Cvetkovic calls for support for dinar
Belgrade, March 02, 2010, (Serbia Today) – Prime Minister of Serbia Mirko Cvetkovic said that the state must support the domestic currency. He said that the decision for the state subsidizing credit in Euros should be reassessed and that the state should “turn towards packages from business banks that are meant for crediting in dinars.” Cvetković told Belgrade daily Večernje Novosti that the citizens will have more trust in the domestic currency when inflation is not six, but two percent. “The decrease in the value of the dinar is felt most with citizens who are indebted in Euros and getting paid in dinars, and their buying power decreases,” he said. Cvetković said that there could be increases in wages in the public sector in some percentage or one-time payments in the second half of the year “if significant economic growth is achieved.” He said that “in the next several years, the cost of pensions will be about 10 percent of the BDP, as it was agreed with the IMF.” The prime minister said that the government has chosen to harmonize pensions with the growth of wages in the public sector over the next 18 months, stating that this period is enough time to take care of the consequences of “the two-year status of frozen pensions.” He said that while he worked in the Privatization Agency, he never heard the names that are being mentioned now in cases of alleged abuses in privatization processes, and that his stance is clear on that because he has initiated several processes against such people who abuse privatization procedures since he became the prime minister. Cvetković said that he does not believe that the privatization of Jat Airways will be completed this year, but that the government will be speaking with air travel companies and investors who have a clear investment plan for the company and will decide on what companies could be good strategic partners.
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