IMF: “160,000 jobs at risk in Serbia this year”

According to the latest analysis by the International Monetary Fund (IMF), done after the fourth revision of the agreement with Serbia, the Fund says that if concrete measures to alleviate the crisis are not implemented, between 140,000 and 160,000 jobs could be lost in the country this year.

The report highlights that several monetary and fiscal measures adopted by the Serbian authorities so far have already mitigated the impact of the crisis such as the reduction of interest rates on loans, the state guarantees for loans to small and medium-sized enterprises and the subsidized loans granted through the Development Fund.

However, the analysis argues that granting new loans could affect the ability of companies to pay interest in the period when their operations return to normal.

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In the analysis, the IMF also notes that between 100,000 and 120,000 workers in Serbia are employed in companies that have problems with interest payments and cash flow.

The economic sectors of such as machine and equipment building, retail, wholesale, transport and catering are particularly sensitive to job loss.

Risky corporate debts could also rise by more than 40% by the end of 2020 if steps are not taken to mitigate that, the Fund’s report concludes.

(Danas, 07.09.2020)

This post is also available in: Italiano

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