The non-governmental organization called the Coalition for Oversight of Public Finances urged the Serbian government to give up on the idea of earmarking 120 million euro from the state budget to solve the problem mortgages indexed in Swiss Francs.
A statement, issued in reaction to the government decision to earmark budget funds to solve the problem facing people whose mortgages are indexed in Swiss Francs, said no money should be taken from the budget to solve the problem.
Want to open a company in Serbia? Click here!
“The loans in Swiss Francs were taken by the grown-up, business-capable people who thought that was the best way to solve their housing problems despite repeated warnings by the National Bank of Serbia (NBS) Governor Radovan Jelasic about the risks,” the NGO said.
According to the Coalition, “there is no justifiable reason why people who did not take the loans should pay for the people who did” to save them from their bad decisions.
The Coalition went on to say that no citizen of Serbia was obliged to pay the price of bad decisions made by the individuals who had taken out such loans, nor bear the risk of their wrong estimates.
If the government goes through with this decision, the Serbian taxpayers will have to bear the costs accumulated by people who had resolved their housing problem by taking out loans in Swiss Francs.
“We warn the Government of Serbia that the adoption of this kind of demagogic and politic decision would have incredibly serious economic consequences and will deprive the citizens of Serbia the possibility of the aforementioned 120 million Euros being used in repairing or building infrastructure, environmental protection, healthcare and education and other services of public interest,” the Coalition said in its statement.
This post is also available in: Italiano