Serbia seek loans from United Arab Emirates to avoid insolvency

Serbia is close to insolvency and must cut public salaries and subsidies to state companies to avoid it , said Deputy Prime Minister Aleksandar Vucic . The government is slated to introduce today's actions designed to squeeze the deficit and shrinking public debt without affecting pensions , Pensions demand critical of the ruling party junior , said Vucic RVA TV broadcaster in an interview yesterday .

" We are almost on the verge of bankruptcy , " he said , according to the interview . " The measures for economic recovery will be difficult and not popular and will affect between 300,000 and 500,000 workers in the public sector , " he said, adding that the savings amount to " between € 200 million and 230 million euros . "
Serbia deficit is expected to reach 8.3 percent of gross domestic product this year , according to the International Monetary Fund . The government wants to reduce the deficit as much as € 1600000000 ( $ 2.2 billion ) by 2016 to ease investors , said the Finance Minister Lazar Krstic is October 2 interview .

Belgrade plans to reach a funding agreement with the IMF , said Vucic . The Washington - based lender refuses to start talks May due to her that the government had failed to meet budgetary commitments .

UAE Loan
He said Vucic , the Serbian leader progressives believe - survey - leading the largest party in the coalition government of Prime Minister Ivica ACIC , the cabinet will accept some and reject other measures proposed by the IMF . He also said that Serbia 's credit rating could be downgraded in the near term .

The government expects to borrow $ 1000000000 of the UAE by the end of this year and the amount that may be reached between $ 2000000000 and $ 3000000000 by late 2014 , said Vucic .

Half of the UAE this year's loan will be used to retire some of the " most difficult debts " and the other half will be " injected into the economy , " he said , without elaborating .

Serbia will also offer its dominant state -owned land line provider Telekom Srbija AD for sale at a price of between € 1500000000 and 2000000000 € " when we know exactly how to spend those receipts , " said Vucic .