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Central Bank Governer Dejan Soskic said that the new Serbian cabinet must address the rising public debt and seek new investors.
Soskic said that the government should be formed quickly and get a positive review from the IMF because that will encourage new investors.
Due to the size of the country, Soskic highlighted the necessity for Serbia to constantly demonstrate its macroeconomic security and encouraged the government to introduce reform measures.
Soskic believes this will assuage any concerns that investors have about Serbia and will help stabilize the foreign exchange market.
He also noted that if the government does not take his advice, the cost of public debt service and pressure on the currency will increase.
Soskic predicted that by the end of the year, the inflation rate will be near 6 per cent and that Serbia will have increased inflation pressure because of the rise of imports and state-controlled prices.
Soskic does not, however, think Serbia will be forced to withdraw funds from the current precautionary arrangement with the IMF.
While the EU accession process has not affected the media’s existential struggle for survival one way or the other, they have made respect for human and minority rights more mainstream.