Sources: Financial Times, Serbia and IMF Seal €3bn Loan; BBC, Serbia Secures IMF Emergency Loan
The IMF and Serbia have agreed on a loan package that will extend a standby credit of $4.1 billion over a two-year period, but the money comes with strict conditions. Like other countries in the region, Ukraine being one notable example, Serbia may have trouble adhering to the conditions placed on the loan, especially considering societal expectations of public spending in the formerly socialist country.
There is some leeway in the conditions – for example, the agreed-upon number for the budget deficit is now three percent, as opposed to an earlier agreement at one and a quarter percent. Major discretionary spending cuts will be necessary, but not social spending cuts. However, there will be a temporary six percent surcharge tax on all incomes, in addition to an existing two-year freeze on nominal wages and pensions. The government will try to protect its poorest citizens by doubling the minimum threshold income needed to qualify for regular income tax, but the surcharge will be painful for many Serbians.
This package replaces the initially-agreed-upon €520 million standby loan, negotiated in January, which Serbian officials had hoped not to need at all. However, as the economic picture worsens, it is evident that Serbia will need access to funding and will have to swallow the IMF's conditions to receive it. The IMF expects Serbian GDP to contract by two percent in 2009, and to remain at the same level through 2010. The loan, in turn, will strengthen currency reserves and stabilize the slumping dinar. Once Serbia meets the necessary conditions, the loan is expected to go through final IMF approval in May.
Questions:
1) Do you think this crisis, and the IMF loans to emerging economies that have come out of it, will affect the expectations of people living in the former Eastern Bloc regarding public spending and significantly change public attitudes towards government support for its citizens?
2) Do you think the IMF's conditions on Serbia and other emerging economies are reasonable in this crisis, or are they incompatible with a government's desire to boost the economy through spending?
Subscribe to:
Post Comments (Atom)
4 comments:
My Brothers and Sister all over the world, I am Mrs Boo Wheat from Canada ; i was in need of loan some month ago. i needed a loan to open my restaurant and bar, when one of my long time business partner introduce me to this good and trustful loan lender DR PURVA PIUS that help me out with a loan, and is interest rate is very low , thank God today. I am now a successful business Woman, and I became useful. In the life of others, I now hold a restaurant and bar. And about 30 workers, thank GOD for my life I am leaving well today a happy father with three kids, thanks to you DR PURVA PIUS Now I can take care of my lovely family, i can now pay my bill. I am now the bread winner of my family. If you are look for a trustful and reliable loan leader. You can Email him via,mail (urgentloan22@gmail.com) Please tell him Mrs Boo Wheat from Canada introduce you to him. THANKS.
$$$ URGENT LOAN OFFER WITH LOW INTEREST RATE APPLY NOW $$$
Do you need Loan to pay off your debt and start a new life? You have come to the right place were you can get FUNDED at a very low interest rate. Interested people/company should please contact us via email for more details.
Full name:
Date of birth (yyyy-mm-dd):
Gender:
Marital status:
Amount Needed:
Duration:
Address:
City:
State/province:
Zip/postal code:
Country:
Phone number:
Monthly Income:
Occupation:
E-mail: shadiraaliuloancompany1@gmail.com
Hello, My name is brian, I just receive my loan of $50,000 from Mr Joseph, after I was let than by other lenders, Mr Joseph Have really put a smile on my face, now I can take good care of my business and others personal needs, you can contact him with his email via: (Josephtylerfirm@gmail.com) contact him now for your loan he is a legit loan lender.
LOAN TESTIMONY OF HOW I GOT LOAN FROM A LEGITIMATE MONEY LENDER
Hello Everyone, My names are Charlotte Wilson, i am from the United States of America, currently living in Texas city.i went in search for a loan on the internet , and the Lord lead me to a genuine loan lender, A Company of Fidelity Loan FInance.fidelityloanfinancial@gmail.com, whom i contacted and requested for a loan amount of $45,000.00 dollars to establish a new business, and to my surprise i got my desired loan within 2 days(48 hours). While searching for a company to get a loan from, i read various testimonies of how people where scammed of their money,and i was scared.I am happy i came in contact with FIDELITY LOAN FINANCE.so i humbly advice you in search of a genuine loan lender to quickly contact FIDELITY LOAN FINANCE via email:fidelityloanfinancial@gmail.com and you will be as happy as i am.may the good lord bless them and reward them effortlessly for what they have done in my life. Indeed they are the best loan lenders.
Post a Comment