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Start of official talks with IMF
Official talks between the Serbian authorities and an International Monetary Fund (IMF) mission opened today with a plenary meeting in the National Bank of Serbia.

Serbian Prime Minister Mirko Cvetkovic will also meet with the IMF mission today, it was announced by the Prime Minister's Cabinet.

An International Monetary Fund (IMF) mission, headed by Mr Albert Jaeger will be staying in Belgrade from August 18 to 30 to continue talks on a new precautionary arrangement with the Republic of Serbia.

Such arrangement would enable the country to draw on IMF funds in case of the balance of payments needs. Preliminary discussions about such arrangement, with a length of 18 months and an access to 200% of the Republic of Serbia’s quota in the IMF (around EUR 1 billion), were held in May 2011.

The IMF mission and Republic of Serbia authorities will review the recent macroeconomic developments in the country, the impact of the current global financial crisis on the Serbian economy, as well as economic policy measures aimed at overcoming external risks and mitigating the possible effects of the crisis, the NBS announced.

Special focus will be placed on the implementation of fiscal policy in 2011 and 2012 – the main objective being compliance with the adopted fiscal responsibility rules.

The two sides shall also discuss structural reforms, notably those relating to public enterprises, health care, educational and pension systems, and the improvement of investment climate.

If the Republic of Serbia reaches an agreement with the IMF mission on economic policy to be implemented in the coming period, the IMF Executive Board may approve a new precautionary agreement by the end of September 2011.

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