The low fuel prices in Serbia will have to go up, while the energy sector needs a transformation, Donal McGettigan, head of the International Monetary Fund's Mission to Serbia, said on March 6.
Speaking at the Kopaonik Business Forum, McGettigan said Serbia had been among the first countries to aid vulnerable population segments with low fuel prices, but that it was now time for changes in the energy sector.
McGettigan went on to explain that this need for change also applied to state-owned energy enterprises, especially the Electric Power Industry of Serbia, which he said should be transformed into a joint-stock company and given new management, as it was bad management that led to the national power utility's current poor condition.
McGettigan believes that Serbia needs more independent public enterprises, stricter monetary policy measures, and more effort to reduce inflation, i.e. additional raising of interest rates.
According to him, Serbia has had excellent results in recent years in increasing the gross domestic product per capita, the flow of direct foreign investment, employment and fiscal consolidation.