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22.10.2008.
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20.10.2008.
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16.10.2008.
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15.10.2008.
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2.10.2008.
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1.10.2008.
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30.09.2008.
29.09.2008.
26.09.2008.
22.09.2008.
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17.09.2008.
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11.09.2008.
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4.09.2008.
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29.08.2008.
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28.08.2008.
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Statement on Signing of Financial Agreement between the Government of the Republic of Serbia, the Government of the Kingdom of Denmark and the National Bank of Serbia
A Financial Agreement between the Government of the Republic of Serbia, the Government of the Kingdom of Denmark and the National Bank of Serbia will be signed on Friday 24 October 2008 at 12:30 p.m. in the press room of the Serbian Government building. Minister of Finance Dr Diana Dragutinovic, NBS Governor Radovan Jelasic and Ambassador of the Kingdom of Denmark Mette Kjuel Nielsen will sign the Agreement.
With the Financial Agreement, the Government of the Kingdom of Denmark will commit a grant of DKK15 million (around EUR2 million) to the Government of the Republic of Serbia for realization of subcomponent 2.3 of the LEDIB programme: Better Access to Favorable Loans. Better Access to Favorable Loans is a subcomponent of the LEDIB programme that supports the Poverty Reduction Strategy and SME Development Strategy in the Republic of Serbia. The programme is implemented in the Nisava county, in the area of construction and textile industry.
With the Financial Agreement, the Government of the Kingdom of Denmark will commit a grant of DKK15 million (around EUR2 million) to the Government of the Republic of Serbia for realization of subcomponent 2.3 of the LEDIB programme: Better Access to Favorable Loans. Better Access to Favorable Loans is a subcomponent of the LEDIB programme that supports the Poverty Reduction Strategy and SME Development Strategy in the Republic of Serbia. The programme is implemented in the Nisava county, in the area of construction and textile industry.
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20.10.2008.
Public Statement of the Ministry of Finance concerning the Start of Implementation of the Interim Agreement on Trade and Trade - Related Matters between the European Communities and the Republic of Serbia
At its session held on 16 October 2008, Government of the Republic of Serbia adopted a Conclusion that stipulates that implementation of the Interim Agreement on Trade and Trade-Related Matters between the European Communities, of the one part, and the Republic of Serbia, of the other part, will start as of 01 January 2009. The objective of this measure is to reduce the period of time that needs to expire between the start of application of the Interim Agreement and the granting of the candidate status to Serbia.
Full trade liberalization will be completed within six years, by 01 January 2014. The tempo of liberalization may be accelerated, depending on the economic situation.
Serbia has enjoyed a preferential status regarding exports of goods into the EU as of 2001, due to Autonomous Trade Measures approved by the EU (Council Regulation 2007/2000), which allow for completely free exports of goods originating in Serbia to the EU market. This regime will be effective up until 31 December 2010. With coming into force of the Stabilization and Association Agreement, these measures will be translated into measures regulated by the Agreement, that is, they will become contractual obligations.
Full trade liberalization will be completed within six years, by 01 January 2014. The tempo of liberalization may be accelerated, depending on the economic situation.
Serbia has enjoyed a preferential status regarding exports of goods into the EU as of 2001, due to Autonomous Trade Measures approved by the EU (Council Regulation 2007/2000), which allow for completely free exports of goods originating in Serbia to the EU market. This regime will be effective up until 31 December 2010. With coming into force of the Stabilization and Association Agreement, these measures will be translated into measures regulated by the Agreement, that is, they will become contractual obligations.
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16.10.2008.
Public Statement
A meeting to discuss the current situation in the Serbian banking sector, organized at the initiative of the Ministry of Finance, took place in the premises of the Association of Serbian Banks on 16 October 2008. Dr Slobodan Ilic, State Secretary at the Serbian Ministry of Finance, Mira Eric, Vice-Governor of the National Bank of Serbia, Dr Veroljub Dugalic, General Secretary of the Association of Serbian Banks and chairs of executive boards of banks participated in the discussion.
It was reiterated at the meeting that the banking sector in Serbia is solvent, liquid, safe and that the citizens and the corporate sector can trust it. The participants analyzed the future of banking operations and highlighted certain moves that need to be made. It was agreed to establish a permanent communication between the Ministry of Finance, National Bank of Serbia, Association of Serbian Banks and the banks, in order to continuously review the initiatives and proposals coming from the banking sector and to identify in a timely manner potential problems and related measures to be taken by competent institutions.
It was reiterated at the meeting that the banking sector in Serbia is solvent, liquid, safe and that the citizens and the corporate sector can trust it. The participants analyzed the future of banking operations and highlighted certain moves that need to be made. It was agreed to establish a permanent communication between the Ministry of Finance, National Bank of Serbia, Association of Serbian Banks and the banks, in order to continuously review the initiatives and proposals coming from the banking sector and to identify in a timely manner potential problems and related measures to be taken by competent institutions.
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15.10.2008.
Public Statement
On 15 October 2008, representatives of the insurance industry and fund industry in Serbia met with representatives of the Ministry of Finance and the National Bank of Serbia in the Ministry of Finance premises.
The objective of the meeting was to identify in direct discussion the potential short-term and/or long-term influences of the global financial crisis on the financial sector in Serbia, and to agree on potential measures that competent governmental institutions may undertake in order to neutralize any damage.
The current situation in the two financial areas was overviewed in a very constructive dialogue. It was agreed it would be necessary to maximally protect and preserve confidence in the banking sector as the generator of general trust in all financial actors, and also that the insurance industry in Serbia was not directly jeopardized by the global financial crisis. Certain phenomena like hesitating or postponing the decision to buy new life insurance policies have been noticed over the past few days, but there have been no withdrawal of funds related with the existing ones. It was noted that the crisis would reflect on the functioning of the fund industry, primarily in a lower number of foreign investors coming to Serbia. Furthermore, it was concluded that the pension funds have not suffered any damage due to the global financial crisis, while the biggest current problem of the fund industry was liquidity.
The objective of the meeting was to identify in direct discussion the potential short-term and/or long-term influences of the global financial crisis on the financial sector in Serbia, and to agree on potential measures that competent governmental institutions may undertake in order to neutralize any damage.
The current situation in the two financial areas was overviewed in a very constructive dialogue. It was agreed it would be necessary to maximally protect and preserve confidence in the banking sector as the generator of general trust in all financial actors, and also that the insurance industry in Serbia was not directly jeopardized by the global financial crisis. Certain phenomena like hesitating or postponing the decision to buy new life insurance policies have been noticed over the past few days, but there have been no withdrawal of funds related with the existing ones. It was noted that the crisis would reflect on the functioning of the fund industry, primarily in a lower number of foreign investors coming to Serbia. Furthermore, it was concluded that the pension funds have not suffered any damage due to the global financial crisis, while the biggest current problem of the fund industry was liquidity.
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2.10.2008.
Draft Law on Changes and Amendments to the 2008 Budget Law and Memorandum on the Budget and Economic and Fiscal Policy for 2008, with projections for 2010 and 2011, Adopted
At a session held on 02 October 2008, the Government of the Republic of Serbia adopted the Draft Law on Changes and Amendments to the 2008 Budget Law and Memorandum on the Budget and Economic and Fiscal Policy for 2008, with projections for 2010 and 2011.
The Draft Law on Changes and Amendments to the 2008 Budget Law of the Republic of Serbia specifies total revenue of the Republic of Serbia at RSD650.174,3 million, total expenditure and net borrowing at RSD695.959,1 million, while the stipulated deficit is RSD45.784,7 million.
Minister Dragutinovic underscored that the revenue/GDP ratio increased by 0.4%, the share of expenditure grew by 0.6%, whereas the deficit rose by 0.2%. “The increase in fiscal policy expansiveness was not outstanding, but it was realized in the atmosphere of high demand and overheated economy. It is necessary that we take a turn toward cutting the share of government expenditure and fiscal deficit in GDP as of 2009 already”, Diana Dragutinovic highlighted.
The Draft Law on Changes and Amendments to the 2008 Budget Law of the Republic of Serbia specifies total revenue of the Republic of Serbia at RSD650.174,3 million, total expenditure and net borrowing at RSD695.959,1 million, while the stipulated deficit is RSD45.784,7 million.
Minister Dragutinovic underscored that the revenue/GDP ratio increased by 0.4%, the share of expenditure grew by 0.6%, whereas the deficit rose by 0.2%. “The increase in fiscal policy expansiveness was not outstanding, but it was realized in the atmosphere of high demand and overheated economy. It is necessary that we take a turn toward cutting the share of government expenditure and fiscal deficit in GDP as of 2009 already”, Diana Dragutinovic highlighted.
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1.10.2008.
Public Statement
Within the Financial Management Framework concerning support to implementation of the Development Cooperation Agreement between the Government of the Republic of Serbia and the Government of the Slovak Republic, Serbian Ministry of Finance and Slovakian Ministry of Foreign Affairs signed a Financial Memorandum on 30 September 2008.
The legal framework for cooperation between the Republic of Serbia and the Slovak Republic is the Development Cooperation Agreement between the Government of the Republic of Serbia and the Government of the Slovak Republic, signed on 03 December 2007. Concrete conditions and the amount of allocated funds are specified in Financial Memorandums, which are signed separately for every year of cooperation – five Financial Memorandums had been signed up to 30 September 2008. Financial Memorandum I granted EUR1.3 million in assistance, Financial Memorandum II allotted EUR1.6 million, Financial Memorandum III allocated EUR1.5 million, whereas Financial Memorandum IV granted SKK50 million (around EUR1.3 million). The Fifth Financial Memorandum for 2007 was signed on 06 May 2008 and SKK64 million (around EUR1.9 million) was granted for candidate projects in 2007.
The legal framework for cooperation between the Republic of Serbia and the Slovak Republic is the Development Cooperation Agreement between the Government of the Republic of Serbia and the Government of the Slovak Republic, signed on 03 December 2007. Concrete conditions and the amount of allocated funds are specified in Financial Memorandums, which are signed separately for every year of cooperation – five Financial Memorandums had been signed up to 30 September 2008. Financial Memorandum I granted EUR1.3 million in assistance, Financial Memorandum II allotted EUR1.6 million, Financial Memorandum III allocated EUR1.5 million, whereas Financial Memorandum IV granted SKK50 million (around EUR1.3 million). The Fifth Financial Memorandum for 2007 was signed on 06 May 2008 and SKK64 million (around EUR1.9 million) was granted for candidate projects in 2007.
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30.09.2008.
Government adopted the Report on Granted State Aid
On September 18, 2008, Government adopted the Report on Granted State Aid in the Republic of Serbia in 2006, an analytical (comparative) survey of allocated state aid in 2004, 2005 and 2006. The 2006 Report contains data collected from authorities granting the state aid, and in its preparation in the greatest possible extention has been applied the methodology prescribed by the European Commission in the field of state aid reporting.
29.09.2008.
Public Statement
Within the financial management framework concerning support to the Development Cooperation Agreement between the Government of the Republic of Serbia and the Government of the Republic of Slovakia, Serbian Ministry of Finance and Slovakian Ministry of Foreign Affairs will sign a Financial memorandum in the Cabinet of the Minister of Finance, 20 Kneza Milosa St., at 4:00 p.m. on Tuesday 30 September 2008.
26.09.2008.
Public Statement
The Ministry of Finance and “Support to the Serbian Ministry of Finance” Project supported by the UNDP on the occasion of the successful conclusion of the Project, held an appreciation meeting on Friday, 26 September 2008 at 2:00 p.m. at the Ministry of Finance, Kneza Miloša 20. Minister of Finance Diana Dragutinović, United Nations Development Programme Resident Representative Lance Clark, and Royal Netherlands Embassy Deputy Head of Mission Tsjeard Hoekstra attended the event.
On behalf of the Ministry of Finance State Secretary Janko Guzijan expressed gratitude to the Government of the Kingdom of the Netherlands and UNDP for their enormous contribution to the Ministry of Finance’s capacity development during past seven years. The State Secretary expressed deep belief that the cooperation with the Government of the Kingdom of the Netherlands and UNDP will continue in the future as well.
On behalf of the Ministry of Finance State Secretary Janko Guzijan expressed gratitude to the Government of the Kingdom of the Netherlands and UNDP for their enormous contribution to the Ministry of Finance’s capacity development during past seven years. The State Secretary expressed deep belief that the cooperation with the Government of the Kingdom of the Netherlands and UNDP will continue in the future as well.
22.09.2008.
2008 Budget Revision by October 5
Minister of Finance Diana Dragutinovic underscored that money in the state coffers should be redistributed, while some 55 billion dinar gap in the budget would be covered from current revenues and by reallocation of expenses. “The 55 billion dinars can be covered with real money”, Minister Dragutinovic highlighted.
The Minister specified that additional spending was required because of expenses related with establishment of a joint venture between Serbia and Italy’s Fiat, as well as due to financing of the construction of Corridor 10 and the 10 percent increase in October pensions that will be paid in November.
The Minister specified that additional spending was required because of expenses related with establishment of a joint venture between Serbia and Italy’s Fiat, as well as due to financing of the construction of Corridor 10 and the 10 percent increase in October pensions that will be paid in November.
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17.09.2008.
The New Law on Public Procurement Will Bring Budget Savings
State Secretary of the Ministry of Finance Slobodan Ilic at today’s press conference said that the new Law on Public Procurement will enable significant budget savings, contribute to the enchantment of the competition and of private sector, as well as to the creation of supplementary anticorruption mechanisms. “By enacting this law, whose bill has already been sent by the Serbian Government to the Parliament for the adoption on urgent procedure, the state will be able to fulfill one more precondition on Serbia’s EU accession path”, said Slobodan Ilic.
State Secretary Ilic pointed that with this draft law, more than two thirds of the current Law on Public Procurement have been altered. As State Secretary Slobodan Ilic specified, the new law will bring formal changes, but will also cut down the expenses and administrative procedures’ timeframes, it will also improve public procurement procedure and its efficiency, as well as introduce better control, surveillance and bidders’ rights protection.
State Secretary Ilic pointed that with this draft law, more than two thirds of the current Law on Public Procurement have been altered. As State Secretary Slobodan Ilic specified, the new law will bring formal changes, but will also cut down the expenses and administrative procedures’ timeframes, it will also improve public procurement procedure and its efficiency, as well as introduce better control, surveillance and bidders’ rights protection.
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11.09.2008.
Public statement of the Ministry of Finance concerning the Interim Agreement on trade and trade-related matters between the European Community and the Republic of Serbia
The National Parliament of the Republic of Serbia ratified the Stabilization and Association Agreement and the Interim Trade Agreement on September 9, 2008. The SAA and the Interim Agreement were signed in Brussels on April 29, 2008.
The SAA will come into force after its approval by the EU Council of Ministers and the European Parliament and ratification in all the signatory countries, the EU member states. The Interim Agreement will be enacted after it is confirmed by the Council of Ministers and the European Parliament.
The Interim Agreement encompasses the trade-related section of the SAA. It regulates the bilateral trade in industrial and agricultural products and will be applied until the SAA is ratified in all the EU member countries.
The SAA will come into force after its approval by the EU Council of Ministers and the European Parliament and ratification in all the signatory countries, the EU member states. The Interim Agreement will be enacted after it is confirmed by the Council of Ministers and the European Parliament.
The Interim Agreement encompasses the trade-related section of the SAA. It regulates the bilateral trade in industrial and agricultural products and will be applied until the SAA is ratified in all the EU member countries.
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4.09.2008.
Public Statement
As of July 2008, the Ministry of Finance has been reporting on execution of budget revenues and expenses in line with standard and internationally comparable methodology created by the International Monetary Fund (Government Finance Statistics – GFS, 1986). The main difference between the previous and the new methodology is that the former methodology overestimated budget revenues (by including the license for mobile telephony) and underestimated expenses (by failing to include loans and repayment of debt to pensioners). Therefore, the planned RSD14.8 billion budget deficit for this year (according to the former methodology) grew to RSD44.9 billion with application of the standard international methodology.
Simultaneously, for reasons of comparability, the Ministry of Finance has continued to report by following the former methodology, in line with which the 2008 Budget Law was adopted. According to the former methodology, the budget of the Republic of Serbia created RSD3.9 billion surplus in the first eight months of 2008, while the standard international methodology (GFS 1986) indicates that the budget posted RSD17.4 deficit.
Simultaneously, for reasons of comparability, the Ministry of Finance has continued to report by following the former methodology, in line with which the 2008 Budget Law was adopted. According to the former methodology, the budget of the Republic of Serbia created RSD3.9 billion surplus in the first eight months of 2008, while the standard international methodology (GFS 1986) indicates that the budget posted RSD17.4 deficit.
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29.08.2008.
Budget Revision Proposal in September
The State Secretary at the Ministry of Finance Janko Guzijan announced that a revised budget will be presented to the government in September and discussed and adopted in the Serbian Parliament by mid-October. In preparing the revision, the objective of the Ministry of Finance will be to curb public expenditure and budget deficit, that is, to provide funds for additional expenses by reallocation.
The State Secretary Janko Guzijan also highlighted that the Ministry of Finance expects the budget revenues to increase by up to RSD20 billion, as a result of stronger economic growth, but also due to inflation, which will be higher than originally planned. In the first seven months of the year, revenues in state coffers were 18 percent higher relative to the same period last year.
The State Secretary Janko Guzijan also highlighted that the Ministry of Finance expects the budget revenues to increase by up to RSD20 billion, as a result of stronger economic growth, but also due to inflation, which will be higher than originally planned. In the first seven months of the year, revenues in state coffers were 18 percent higher relative to the same period last year.
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28.08.2008.
Extraordinary 10% Pension Rise
State Secretary Janko Guzijan’s interview to the national broadcaster RTS, 28 August 2008
After some three weeks of consultations, the government will consider the proposal by the Ministry of Labor and Social Policy regarding extraordinary pension increase in October 2008. The last proposal agreed with the Ministry of Finance, which adopted a positive opinion on the proposal of the Ministry of Labor and Social Policy, suggests that on top of the regular adjustment of pensions in October, pensions should be increased extraordinarily by further 10 percent.
After some three weeks of consultations, the government will consider the proposal by the Ministry of Labor and Social Policy regarding extraordinary pension increase in October 2008. The last proposal agreed with the Ministry of Finance, which adopted a positive opinion on the proposal of the Ministry of Labor and Social Policy, suggests that on top of the regular adjustment of pensions in October, pensions should be increased extraordinarily by further 10 percent.
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