Serbia’s New Government Promises Regular Wage, Pension Payments
Dejan Šoškić, a former governor of the National Bank of Serbia and candidate for the Student Party, has assured the public that wages and pensions will be paid regularly during the transition to a new government. He emphasized that state institutions should act within their mandates, and there’s no reason for panic. Speaking to TV N1, Šoškić expressed optimism, stating, “When the state stops being dismantled through corrupt deals, Serbia will only get better.”
Šoškić highlighted the need for increased oversight of domestic financial institutions to ensure compliance with laws and regulations. He announced plans to review significant contracts, protecting taxpayers’ interests while honoring existing state obligations. This approach aims to address corruption and strengthen fiscal responsibility.
Pension Payments Scheduled
The Republican Pension and Disability Insurance Fund (PIO) announced that October pensions will be paid starting November 3rd. Self-employed pensioners will receive payments on this date, with home deliveries and post office payments beginning the same day. Agricultural and military pensioners will be paid on November 5th, while employed pensioners will receive payments on November 10th. Pensioners residing in former Yugoslav countries will start receiving payments on November 10th. For employed pensioners, payments will be credited to their current accounts on November 10th, with home deliveries and post office payments starting on November 9th.
The Student Party’s recent electoral victory, securing 141 out of 250 parliamentary seats, has been met with a positive market response. Šoškić noted that the price of Serbian government bonds has decreased on the international financial market, reflecting increased investor confidence. “The change in government has instilled confidence in international investors, which will contribute to lowering interest rates on Serbia’s future borrowings,” he added.
Market Confidence Grows
Dušan Pavlović, a professor at the Faculty of Political Sciences, University of Belgrade, observed a drop in yields on Serbian eurobonds from 5.372% before the election to 5.192% on Tuesday. This indicates that investors perceive Serbia as less risky, likely due to reduced political tensions after former President Aleksandar Vučić conceded defeat. Pavlović explained, “The yield drop means investors can earn less because they view the country as less risky, probably following Vučić’s concession on Sunday evening, which eased political tensions.”
The spread between Serbian and German benchmark bonds also narrowed, falling by 20.6 basis points on Monday and an additional 0.6 points on Tuesday. This trend mirrors the situation in Hungary after Viktor Orbán’s concession in April, where yields returned to pre-election levels by early September. Pavlović noted that while yields on Croatian and Hungarian bonds also fell post-election, Serbia’s decline was the most significant, dropping by 17.3 basis points compared to 3.2 for Croatia and 0.7 for Hungary.
