“Those 900 million dollars do not include the debts that will be necessary after the adoption of the budget for 2022, and they concern covering the deficit in the new budget and obligations regarding the return of interest and loan principal from previous years,” said the chairman of the People’s Party Committee for Economy. and finance Borislav Borović.
Borovic specified that the new obligations are foreseen by the Law on Ratification of the Loan Agreement between the Development Bank of Germany (KFW) and Serbia for the purpose of “integrated solid waste management” in the amount of 22 million euros.
“According to the Law on the Regulation of Obligations to the International Monetary Fund (IMF) based on the use of funds for the general allocation of special drawing rights, the public debt of Serbia will be increased by another 890 million dollars,” Borovic said.
He said that those funds will be used from January 1, 2022, and added that they will represent a long-term financial obligation and serve to refinance Serbia’s obligations or to finance current budget needs.
“During the approval of these funds to Serbia in August last year, Finance Minister Sinisa Mali said it was ‘a message from the IMF to Serbia and a confirmation of our successful cooperation and Serbia’s success in implementing reforms.’ “Serbia will withdraw these funds, because this is a right, but not an obligation, and that Serbia does not need financial support from a new source due to a stable financial system,” Borovic reminded.
He added that those funds were approved to each member of the fund and assessed that according to the draft law on withdrawal of those funds from the IMF adopted today, “it is clear exactly how much Serbia does not need those funds.”