"No problems in talks with IMF"

Serbian Finance Minister Diana Dragutinovic said that she does not know where the media heard that there are problems in the ongoing IMF negotiations. Dragutinovic said at a press conference that government representatives are not concerned over this stage of the negotiations because, as she pointed out, Serbia "has fulfilled all its obligations" to the International Monetary Fund (IMF). "No problems in talks with IMF" She SAID that this is the second week of negotiations, and that the most important issue is pension system reform. Official talks between IMF delegates and the Serbian government, as part of the third review of the stand-by arrangement, started with a plenary session on February 9 and will continue until February 23. In the talks so far, IMF has rated positively the government's realization of the stand-by arrangement obligations, including the successfully conducted measures to alleviate the adverse effects of the crisis, macroeconomic indicators which are better than in other Eastern European countries, and the pension system reform activities to date. On May 15, 2009, the IMF approved a new stand-by arrangement for Serbia, worth EUR 2.9bn, for the strengthening of foreign exchange reserves. Two installments of the loan, totaling EUR 1.12bn, have been withdrawn so far. The IMF agreement requires Serbia to cut down budget spending on public employee salaries and to keep the salaries and pensions frozen in 2010. The agreement also envisages layoffs in the state administration and the adoption of a new pension and disability insurance law.

"No problems in talks with IMF"

She SAID that this is the second week of negotiations, and that the most important issue is pension system reform.

Official talks between IMF delegates and the Serbian government, as part of the third review of the stand-by arrangement, started with a plenary session on February 9 and will continue until February 23.

In the talks so far, IMF has rated positively the government's realization of the stand-by arrangement obligations, including the successfully conducted measures to alleviate the adverse effects of the crisis, macroeconomic indicators which are better than in other Eastern European countries, and the pension system reform activities to date.

On May 15, 2009, the IMF approved a new stand-by arrangement for Serbia, worth EUR 2.9bn, for the strengthening of foreign exchange reserves. Two installments of the loan, totaling EUR 1.12bn, have been withdrawn so far.

The IMF agreement requires Serbia to cut down budget spending on public employee salaries and to keep the salaries and pensions frozen in 2010.

The agreement also envisages layoffs in the state administration and the adoption of a new pension and disability insurance law.