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Serbian PM sees no recession in 2009

  Serbian Prime Minister Mirko Cvetkovic said on Tuesday that Serbia’s economic growth would be lower than the originally planned 3.5% but there would be no recession this year.

Speaking at a business forum at the Serbian Chamber of Commerce, Cvetkovic said that his government would manage to provide macroeconomic stability in 2009.

He said that Serbia would modify its arrangement with the International Monetary Fund “as a precaution,” and change it into a standard stand-by arrangement totaling approximately $2 billion, as support to the country’s foreign currency reserves.

According to Cvetkovic, the stand-by arrangement will enable Serbia to receive EU funds worth €400 million ($511.56 million) as macroeconomic support and another €100 million as preadmission assistance.

The prime minister expressed belief that a new arrangement with the IMF would allow the government to set a higher level of the budget deficit. Originally, the deficit was envisaged to reach between 1.5% and 1.75% of the GDP. (Xinhua)