Sufficient Supplies in Stores

The headquarters of the Ministry of Internal Affairs of Serbia (MUP) announced on Friday that it is taking strict measures "for controlling all illegal activities in connection with speculation and other illegal activities in production and sale of staple articles, medical drugs and fuel."  On Friday, as is cited in this announcement, the police arrested 20 individuals suspected of the mentioned criminal acts, and according to Belgrade's daily press reports, arrests were also made in Novi Sad, Nis and in several other cities in the heart of Serbia.  Market inspectors are more vigilant, so that the majority of stores had to observe decrees affecting opening hours - until seven in the afternoon, as well as regulations on blackouts.

It has not been announced, but it can be imagined that "the strict measures against illegal acts" have contributed to the lessening of the shortage of bread which was felt on Friday, having reached its peak on Saturday, while on Sunday it had already been lessened, with the market getting completely normal supplies of this staple article by Monday.  Belgrade's baking industry appealed to citizens not to store up on bread, increasing its deliveries by 20 to 30 tons per day.

On Friday and Saturday, citizens purchased greater quantities of food supplies, buying enormous quantities of long lasting food products, eggs, spaghetti and crackers, which was attended by the fact that state run store chains continued to accept postdated checks, despite the NATO aggression.  Cordial saleswomen at the state run "Pekabeta" chain of stores urged each customer individually that warehouses are full of many different goods and that enormous home supplies should not be stocked up on.  Postdated checks are accepted in the majority of state run clothing stores, as well as furniture stores, but merchants in these stores did not experience high sales figures.

By contrast with state run stores, private stores refused postdated checks on Friday, and in some stores they even refused to accept domestic currency.  Given that the value of the German mark is at the same level as "before the war" (majority of street dealers sell the German mark for 9.5 to 9.7 dinars, while they purchase it for 9.2 to 9.4 dinars), even private merchants began to accept dinars without problems by Saturday, while checks are still very hard to cash, with postdated checks being refused outright.
The Government of Serbia worked hard on putting a stop to the fever of stocking up on supplies, with ministers holding press conferences since the beginning of the NATO intervention in which they sent a message to citizens that there is enough food, and that supply of the market is guaranteed.  With the declaration of the state of war, even the Government reorganized, with the ministers of industry and finance taking over all economic jurisdictions.

The Serbian Government promised that it will maintain price stability.  The Federal Government introduced a special war tax on the exchange of services and goods at the level of 0.6 percent.  It is the same tax which was active on the level of the Federation until December 31 of last year, after it was introduced in October because of increased spending by the Yugoslav Army in Kosovo.  Economists calculated at that time that this tax had increased prices in one go by two percent.

The Yugoslav Chamber of Commerce also spoke out on the economy, with its president, Mihajlo Milojevic, calling on companies "to work hard, and increase responsibility in delivering on quotas and necessary cooperation between enterprises."

"Besides the pressures and the aggression, a level of economic activity is being maintained, with regular production and supplying of citizens.  The Government assessed that it has enough supplies of all goods, both food and industrial products, necessary for the needs of citizens," announced the Government of Serbia over the weekend.
What interests citizens especially in the economic sphere, beside supplies and prices, is the extent of damage inflicted by the bombing thus far.  The Federal Statistics Institute will begin to take stock of damages beginning today, and according to initial assessments which were reported in "Politika" by the Institute's Director, Milovan Zivkovic, damages amount to about 50 billion dollars.

A pleasant surprise for the population is the fact that the value of the German mark has remained steady throughout the entire country, except that in Montenegro a sharper rise in its value was recorded (9.8 dinars for one German mark).

"The fundamental decision by the Federal Government is to continue to finance government operations exclusively from real funds, with all available financial and material resources being put at the disposal of the country's defense," announced the Yugoslav Government on Monday.  In the same announcement it was also stated that the government adopted a list of decrees "which regulate the legal position and activities of the National Bank of Yugoslavia, as well as banks and other financial organizations while the state of war is in effect.  The Government also gave its consent to the Decision on Monetary Policy of the National Bank of Yugoslavia while the state of war is in effect," it is stated in the announcement without detailed explanations of the mentioned measures.  The hardest hit thus far are smokers, for the supply of cigarettes is smaller than the demand, at least in Belgrade.