Serbia to ask IMF to okay increase in public sector wages, pensions
- Consumer staples stocks help Wall St. pare some losses
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Verizon Communications (VZ) May Acquire Big Cable Company - NYP (CHTR) (CMCSA)
- Citron Research Negative on Lannett (LCI); Sees Shares at 'Zero' Over Long Term
- Einhorn's Greenlight Mentions Caterpillar (CAT) Short in Q4 Letter; Doesn't See Disney (DIS) Buying Netflix (NFLX)
Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo October 10, 2012. REUTERS/Kim Kyung-Hoon
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
BELGRADE (Reuters) - Serbia's government will seek approval from the International Monetary Fund to raise public sector wages and pensions, Prime Minister Aleksandar Vucic said on Monday, adding that stronger-than-expected fiscal performance gave scope for that.
In July, the Serbian budget had a surplus of 22 billion dinars (179 million euros), compared with an expected shortfall of 83 billion dinars. GDP growth for 2016 is forecast to reach 2.5 percent, up from previous estimates of 1.8 percent.
"In September or October we will start talks with the IMF about the rise ... there's scope and strength for that," Vucic, whose new government was endorsed by parliament on Aug. 11, told a news conference. He did not say what increases he would seek.
Serbia cut pensions and public sector wages in 2014 to secure a 1.2 billion-euro precautionary deal with the IMF. As part of the agreement, Belgrade needs IMF backing to increase them.
In June, after completing the fifth review of its loan deal with Belgrade, the IMF commended Serbia for its economic performance and said it would address public sector wages and pensions when it reviews Serbia's 2017 budget plans.
The IMF expects Serbia's budget deficit to reach 2.5 percent of national output in 2016, compared with a targeted 4 percent.
(1 euro = 123.2095 Serbian dinars)
(Reporting by Aleksandar Vasovic; Editing by Ingrid Melander and Andrew Roche)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Lawsuit over naked Missouri jail inmates is revived
- Lithuania to build fence along border with Russia's Kaliningrad
- Facebook's virtual-reality tech was not stolen, Zuckerberg testifies
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!