Serbia needs money

Serbia plans to borrow billions of dollars from the United Arab Emirates (UAE ) , while Deputy Prime Minister of this country has warned that Serbia could face bankruptcy without urgent steps to reduce public sector salaries , writes at the beginning of Item of London Financial Times newspaper .

According to the newspaper , these comments are Vuçiqit Alexander , vice president of the Serbian government , which is seen as the most politically powerful man in Serbia's ruling coalition , which was formed in July last year . His remarks were made before the government to reveal the depth of austerity measures . Vucic said that Serbia expects to receive low -interest loans from the United Arab Emirates , in the amount of one billion dollars in " favorable conditions " this year , and by the end of 2014 , loans amounting to 2 - 3 billion , writes the Financial Times of London newspaper .

Plan loans comes in the height of the relations between the UAE and Serbia , writes , noting that the country 's oil-rich Gulf has taken investuerse targeted opportunities , despite the role of Serbian forces during the war against mysliamnëve wars in former Yugoslavia in the 90 's. In fact , the Serbian government led by nationalists , including Vuçiqin .

Serbia was in talks to take loans from the United Arab Emirates for a few weeks after the company Etihad Airways agreed in February to buy 49 % of the company JAT Airways , which produced losses . Vucic said that half of the planned loan from the United Arab Emirates will be used for repayment of foreign debts some of the highest Serbia .

The other half will be " injected into the economy ." The Financial Times writes that can create a special fund for the investment of a previous loan from the United Arab Emirates , $ 400 million , in the agricultural sector , Vucic said .

According to him , this place pothuajsemund credit " considered gift " , given the favorable interest rate and terms . It seems that he has worked vigorously to create reports with Crown Prince Sheikh Mohammed bin Zayed .

Analysts say the UAE were particularly interested in the military sector and agriculture in Aserbi . " There is interest in the defense industry ," said Tim Ash , the research unit at Standard Bank , adding that "the UAE is clearly interested in promoting geopolitical interests in the Middle East and the ability to have their hands a production capacity defense could possibly be useful . "

Ash said that the interest rate offered by the UAE seems far below the level of what Serbia could borrow in the market , and total loans of 2-3 billion dollars , or up to 8 % of gross domestic production , from 37 billion last year , could pose a turn for Belgrade .

The countries of the former Yugoslavia remain among those most affected by the global financial crisis , while some of them , including Serbia , Croatia and Slovenia , have slipped back into recession last year , while demand has fallen Eruozonë , writes the Financial Times .

Serbia , which next year is expected to start negotiations for EU membership , the unemployment rate is 25 % , which is among the highest in Europe .

In an interview to a television channel , on Sunday , Vuçiqi said that "the state is virtually bankrupt , but we will do everything possible ... to prevent this . We are almost bankrupt , literally and measures for economic renewal will be difficult , not populist " .

He stressed that " should reduce the level of salaries in the public sector and first start of the politicians ."

According Vuçiqit , these measures will be affected between 300 thousand to 500 thousand workers in the public sector in the country with 7.2 million inhabitants . But he noted that pensions will not be reduced . Vucic Vice words seem intended to prepare the Serbian population to harsh austerity measures .

But analyst Tim Ash said that Serbia is not in immediate danger of bankruptcy , reports Rel .

" From a market perspective it probably was not the terminology or language that should be used ," Ash said , adding that " Serbia is not immediately close to bankruptcy because they have enough cash and finance needed by the end of the year " .

According to him , "this policy aims at managing local expectations ," concludes the article in the London newspaper , The Financial Times .