Official IMF revision talks on Monday

Official negotiations on the fifth revision of the IMF stand-by arrangement will begin on Monday in Belgrade. The loan arrangement is worth EUR 2.9bn. Official IMF revision talks on Monday As Serbian officials meet with the IMF delegation, the main topic of conversation will be fiscal responsibility, that should result in defining the level of the state's indebtedness. The talks, that will continue through August 31, will also review the latest fiscal, monetary and macroeconomic movements in Serbia, and the country's adherence to the previously agreed upon obligations. The government has announced that there will be no new discussion of the proposed changes to a law defining pension and disability insurance, since the draft has already been sent to parliament. Previously this week, trade unions said they would organize strikes and protests over the draft. Meanwhile, conflicting messages are coming from various ministers regarding one of the conditions set by the IMF - to keep public sector salaries and pensions frozen this year. Economy Minister Mladjan Dinkic said he would ask for the budget salaries to be raised in October, while Finance Minister Diana Dragutinovic believes this should not happen before 2011. Central bank (NBS) Governor Dejan Soskic agreed with Dragutinovic, and said the revision negotiations would not be easy, but expressed his optimism regarding their successful outcome. The Ministry of Finance also said it did not expect problems in the talks, since in the first half of this year, the agreed budget deficit level was honored, while a draft law on fiscal responsibility is in the works, and is expected to be defined in the next two weeks. Successful revision negotiations would enable Serbia to draw another tranche of the IMF loan.

Official IMF revision talks on Monday

As Serbian officials meet with the IMF delegation, the main topic of conversation will be fiscal responsibility, that should result in defining the level of the state's indebtedness.

The talks, that will continue through August 31, will also review the latest fiscal, monetary and macroeconomic movements in Serbia, and the country's adherence to the previously agreed upon obligations.

The government has announced that there will be no new discussion of the proposed changes to a law defining pension and disability insurance, since the draft has already been sent to parliament.

Previously this week, trade unions said they would organize strikes and protests over the draft.

Meanwhile, conflicting messages are coming from various ministers regarding one of the conditions set by the IMF - to keep public sector salaries and pensions frozen this year.

Economy Minister Mlađan Dinkić said he would ask for the budget salaries to be raised in October, while Finance Minister Diana Dragutinović believes this should not happen before 2011.

Central bank (NBS) Governor Dejan Šoškić agreed with Dragutinović, and said the revision negotiations would not be easy, but expressed his optimism regarding their successful outcome.

The Ministry of Finance also said it did not expect problems in the talks, since in the first half of this year, the agreed budget deficit level was honored, while a draft law on fiscal responsibility is in the works, and is expected to be defined in the next two weeks.

Successful revision negotiations would enable Serbia to draw another tranche of the IMF loan.