Negotiations on WB loan to follow adoption of reform laws

KOPAONIK - The World Bank (WB) will start negotiations with the new Serbian government on a USD 250 million loan towards budgetary support as soon as reform laws are adopted and a restructuring of 153 state and socially-owned companies is initiated, Tony Verheijen, the World Bank Country Manager for Serbia, told Tanjug on Tuesday.

We can start the negotiations on the loan as soon as the new government is formed, and as soon as it ensures that amended privatisation and bankruptcy laws are adopted and the restructuring of the 153 companies initiated, said Verheijen, who is attending the Kopaonik Business Forum.

Commenting on Serbia's key economic problems and looming reforms, Verheijen said that fiscal consolidation, which should enable Serbia to manage public revenues strategically, is very important.

This is particularly related to the way funds will be spent on salaries in the public sector, Verheijen said.

We believe that the money is not being spent efficiently or transparently, Verheijen said, adding that this, for instance, has resulted in the poor state of the health care and education systems.

Serbia has EUR 3.2 billion worth of undrawn loans towards infrastructure projects, so the lack of efficiency is also evident in that respect, he said.

It is very important to improve public sector management, which is unsatisfactory, Verheijen said.

The restructuring of public companies must be completed and a large number of the main political parties support the continuation of the process, Verheijen said, adding that he is pleased that the World Bank will continue to work on this with the new Serbian government.

The World Bank will continue to work with the government on boosting...