Economy University Professor, Dejan Soskic showed concern about macroeconomic situation in Serbia. He warned that new borrows may be dangerous because we are just trying to avoid going bankrupt. Soskic has estimated that we are making that kind of situation that we must set aside more and more money each year for paying debts to those we own to and all of that has its limits and very high price, said Soskic for magazine Biznis.
He claims that we supposed to search for cure in reform and rationalization of public sector, in low and stable inflation, in gradual increase of dinar instruments and simultaneous decrease of euro instruments in system and intelligent fiscal measures, following the industrial structure change.
Talking about inflation, estimated Soskic that it is very important for Serbia to ensure relatively and stable low inflation, without any big oscillations, which demands processed and unprocessed food price stabilizing for our conditions.
Soskic thinks that Serbian price stabilization enemy is high eurozation and constant rise of prices over inflation rate, beside food prices instability. These prices are usually under state control.
Regarding to dinar course, Soskic said that new government forming caused slight growth of trust which reflected dinar course strengthening. Very important also was credit subsidizing that government has done in last few months.
-That government measure caused artificial euro selling by banks, in order to permit subsidized credit in dinars with foreign currency. That helped dinar to become stronger in short-term, but currency risk was also increased in industry system of country.-explained Soskic which was NBS governor earlier.
Condition for stability on foreign exchange market has to be both price stability and certain degree of country payment balance, so Serbia has to follow lower inflation rate in accordance with its inflation aim- concluded Soskic.
Source Serbia-business
