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Serbia Needs to Stop Financing Ailing State Companies, IMF Says

  • IMF plans staff visit beginning Feb. 27, IMF’s Sosa says
  • Serbia needs ‘permanent solution’ to unprofitable enterprises
The copper mining and smelting complex, operated by RTB Bor Group, in Bor, Serbia.
Photographer: Oliver Bunic/Bloomberg

Serbia needs to stop subsidizing unprofitable state companies to lock in progress the largest former Yugoslav republic has made in cutting the budget, staunching one of the largest drains on state coffers, the local head of the International Monetary Fund said.

“Fiscal costs from loss-making state-owned enterprises need to be plugged,” said Sebastian Sosa in an Belgrade interview on Tuesday, ahead of the IMF’s staff visit that starts on Feb. 27 and runs through March 6.