Serbia gets green light for wage hikes, promises asset sales

The International Monetary Fund agreed to Serbia’s plans for publicsector wage and pension increases next year, the country’s prime minister said yesterday. Speaking at a briefing after an IMF delegation reviewed its 1.2 billion-euro loan to Serbia, Prime Minister Aleksandar Vucic also promised to do everything possible to find a buyer for a heavily indebted state copper mine. Vucic said the IMF had agreed to plans to raise wages for publicsector workers by 5 to 7 percent next year and to increase pensions. “We had long and difficult talks with IMF,” he said. “They are always cautious, but I think we have achieved great results that can make us proud.” Serbia’s growth and inflation figures have come in better than expected over the past year.

But the fate of Serbia’s debt-ridden state enterprises remains a sticking point. The IMF insists that they be made to turn a profit or be sold or shut down - which would be a blow for thousands of employees. “We will not allow RTB Bor to collapse,” Vucic said of the totemic state copper mine. “I will beg the Chinese; I am capable of kneeling before Chinese Prime Minister Li Keqiang for that,” Vucic said after promising a solution “within six months”. — Reuters