Serbia adopts revised budget after IMF demands

[Robbien]

Source: Agence France-Presse

The parliament of Serbia approved a revised 2009 budget on Wednesday, a key condition for it to secure a 4.0-billion-dollar (3.0-billion-euro) IMF standby loan, state agency Tanjug reported.

With 127 votes for and 16 against, the assembly adopted a revised budget with a deficit projected at 70.5 billion dinars (742.4 million euros, 968.1 million dollars), or 3.0 percent of gross domestic product.

The adoption of the cost-cutting budget is a condition for the Balkan country to qualify for the standby loan from the International Monetary Fund, whose board still need to approve the credit option.

The government has introducted a series of measures to cut public spending by 1.34 billion dollars, including a 10-15 percent reduction in public servants' wages and downsizing the public administration by 10 percent.

Read more: http://news.id.msn.com/business/article.aspx?cp-documentid=3266265

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The cuts in public spending demanded by the IMF are cuts in public health and welfare programs. Serbia has to dramatically reduce spending on its citizens so it can pay back loans to international bankers.

Citizens protested in the streets while the budget was being cut.

And the IMF loan is also mainly going to be used to pay back international bankers.

[brentspeak]

1. IMF = global loansharking operation