Politika online – Increase wages in the public sector by seven percent

A visit to RTS Rouf said that the government will announce in the coming weeks how much the percentage increase will be per sector, and this increase, he says, runs parallel with the growth of GDP.

"The system of new salaries that the government proposes, with the ability to better balance wages in the public sector, so that those who earn more salaries – teachers, doctors, nurses will get a bigger increase and I hope that these reforms will succeed "Said Ruf, reports Tanjug.

Speaking of pensions, he pointed out that after four years of retirement, they are "thawed" and will increase evenly.

According to him, the government was discussed and as from 2019 new rules for indexation of pensions would be adopted, which would increase pensions on the basis of rights.

Although Serbia has made a lot of economic progress and the IMF was satisfied with the results, Ruf noticed that there are always faster areas to develop and praised the good privatization of RTB Bor and PKB, but he hated the delay in privatizing Petrohemija.

"In general, the reform program is going well," Rouf said, adding that the growth of the Serbian economy may grow faster, but that depends on solving problems in his business environment, such as better tax administration, the judiciary and government administration.

The IMF expects the economic growth of Serbia by 4.2 percent this year

The International Monetary Fund expects a real GDP growth of Serbia of 4.2 percent this year, and by 3.5 percent in the next year, said IMF head of IMF delegation James Ruf today.

"Good macroeconomic performance is still being achieved, with growth accelerating in 2018 thanks to private consumption and dynamic foreign direct investment and exports," Ruf told a press conference at the end of the ten-day visit of the IMF team to Serbia.

"We expect real GDP growth to be 4.2 percent in 2018 and 3.5 percent in 2019. Full implementation of the structural reform program will also have a positive impact on growth potential," emphasizes Ruf, Tanjug reports.

The IMF expects total inflation to rise to 2.6 percent in August to remain close to the 3.0 percent mid-range between 2018 and 2019. "The fiscal results are still good, and the general government level is expected to record a surplus of 0.6 percent of GDP this year, while capital expenditures will exceed expectations," he said.

He also added that government debt should fall below 55% of GDP by the end of the year and that government bond yields stabilize at levels close to historic minima.

He recalled that, in view of the positive budgetary results, the government abolished the temporary reduction of pensions from times of crisis, which will enter into force in November 2018, while ensuring that the share of total pensions in GDP does not increase .

Ruf said the IMF team agreed with the Serbian authorities on the main parameters of the 2019 budget, which planned a total budget deficit of half a percent of GDP, which would lead to a further reduction of public debt.

This would, for example, maintain fiscal discipline, with the opening up of space for the implementation of growth-enhancing measures, such as an additional increase in public investment and a modest reduction in the tax burden on labor.

It is also expected that total wage and pension costs will rise in line with nominal GDP.

Ruf noted that the indicators of the financial sector continue to improve.

"Problem loans in the banking sector continued to decline, and an updated problem-solving strategy will focus on bad loans in state financial institutions, including the Deposit Insurance Agency."

Vucic: Without the IMF, Serbia would have a hard time getting out of the crisis

Serbian President Aleksandar Vucic met today with the delegation of the International Monetary Fund headed by Head of Mission James Ruf, who stressed that Serbia's budgetary results are very good because of the difficult reforms that have been made in the previous period.

President Vucic thanked for the extraordinary support of the International Monetary Fund and stressed that without this fund Serbia would have trouble getting out of the terrible crisis it was five years ago, Tanjug reports.

The interlocutors noted that, from the most difficult situation in the period mentioned, Serbia would be the country with the best economic position in the Western Balkans at the beginning of the next year, the Cooperation Service with the media of the President of the State.

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