Popovic: Serbia has no one to borrow money from anymore
The new agreement with the International Monetary Fund (IMF) means that Serbia no longer has anyone to borrow money from, said Professor of the Faculty of Economics, Danica Popovic.
In an interview with the Vreme weekly, Popovic said that “in the first round of measures, wages and pensions will certainly not be affected.”
“We used to take money from the Russians or the Chinese before, but now we cannot because of the war or it is not so popular,” Popovic said, predicting that the IMF would ask Serbia to “close” the account with a fiscal deficit of three or four percent.
Since Serbia will “apparently have a much higher deficit”, she warned that this would be a huge problem.
“Wages and pensions will certainly not be affected in the first round, but in the second round they will, by banning their increase, and they will be eaten up by inflation,” Popovic said.