WB: Loans to health care system, deposit insurance fund

WASHINGTON - The World Bank (WB) has granted Serbia USD 40 million for a second project in the health care sector and USD 200 million for a project aimed at strengthening the financial and institutional capacity of the Deposit Insurance Agency.

The Second Serbia Health Project will support the improvement of health care financing and efficient purchasing of pharmaceuticals and medical products, said WB Country Manager for Serbia Tony Verheijen.

Total health spending in Serbia accounts for about 10.4 percent of GDP, so it is critical for Serbia to increase the productivity of its health spending, particularly given an environment of fiscal constraints and increasing demands for health care from an ageing population, reads a release issued by the WB.

Centralized procurement was piloted during the preparation of the project for one-third of the drugs used in the public health care system, and it reduced the cost by EUR 25 million for 2014.

"Lower-income groups will benefit from this efficiency as they cannot opt out of the public health care system," Tony Verheijen said.

Malignant diseases are a growing problem in Serbia. New equipment financed by the project will improve radio therapy for those patients, said Timothy Johnston, Sector Leader for Health and Nutrition in the World Bank's Europe and Central Asia region.

The Deposit Insurance Fund of Serbia was depleted by several recent bank failures, so USD 200 million will be allocated to replenish the Fund, Verheijen added.

The Deposit Insurance Fund covers depositors in Serbia of up to EUR 50,000 in the event of a bank failure.

Significant support is also provided to strengthen the institutional and technical capacity of the...