IMF: New arrangement or extension of old one

International Monetary Fund (IMF) mission has offered Serbia's negotiating team to extend the existing credit arrangement or to set up a new one. The arrangement would contain new elements of public sector reforms and would constitute an obligation for the next Serbian government as well. IMF: New arrangement or extension of old one In the talks on the seventh revision of the stand-by credit arrangement with Serbia, the IMF still insists that the country should continue implementing pension law reforms and structural reforms in public enterprises. The IMF delegation also reiterated that public spending should not be allowed to increase, as this would result in overstepping the limits set for 2011, and warned that the country needed to take greater care and prevent employees with lowest salaries from turning into regular victims of reforms as they had been brought to the lowest endurance limit. After several meetings with the IMF mission over the course of the week, representatives of the Serbian government backed the continuation of cooperation with the IMF. National Bank of Serbia (NBS) Governor Dejan Soskic believes that Serbia should close the arrangement with the IMF as a precautionary measure, without burdening the country by further debts. This implies that the IMF would be providing advisory assistance to Serbia, but the IMF mission would be constantly monitoring macroeconomic developments in the country. Of the arrangement worth EUR 2.87bn, Serbia has withdrawn EUR 1.51bn since May 2009 but has not used them sum up yet. The country's arrangement with the IMF is due to expire in April 2011. During the talks with Serbian officials, trade unions of teachers, judiciary and public administration, representatives of the IMF mission pointed out that the country had not carried out reforms in the public sector, that Serbia had a surplus of employees, that budget funds were being spent irrationally and that Serbia needed to set up more strict control. At the start of the two-week talks on Monday, the Serbian government and the IMF mission agreed that all revisions carried out so far have been successful and that the country needs to establish a firm fiscal discipline. The officials also assessed that salary raise for employees in Serbia needs to be in keeping with the country's established budget and economic policy. During the talks between IMF representatives and Prime Minister Mirko Cvetkovic, Deputy Prime Minister Jovan Krkobabic, Finance Minister Diana Dragutinovic and Labor and Social Policy Minister Rasim Ljajic, it was mentioned that the officials might discuss the possibilities for the country's future cooperation with the IMF.

IMF: New arrangement or extension of old one

In the talks on the seventh revision of the stand-by credit arrangement with Serbia, the IMF still insists that the country should continue implementing pension law reforms and structural reforms in public enterprises.

The IMF delegation also reiterated that public spending should not be allowed to increase, as this would result in overstepping the limits set for 2011, and warned that the country needed to take greater care and prevent employees with lowest salaries from turning into regular victims of reforms as they had been brought to the lowest endurance limit.

After several meetings with the IMF mission over the course of the week, representatives of the Serbian government backed the continuation of cooperation with the IMF. National Bank of Serbia (NBS) Governor Dejan Šoškić believes that Serbia should close the arrangement with the IMF as a precautionary measure, without burdening the country by further debts.

This implies that the IMF would be providing advisory assistance to Serbia, but the IMF mission would be constantly monitoring macroeconomic developments in the country.

Of the arrangement worth EUR 2.87bn, Serbia has withdrawn EUR 1.51bn since May 2009 but has not used them sum up yet. The country's arrangement with the IMF is due to expire in April 2011.

During the talks with Serbian officials, trade unions of teachers, judiciary and public administration, representatives of the IMF mission pointed out that the country had not carried out reforms in the public sector, that Serbia had a surplus of employees, that budget funds were being spent irrationally and that Serbia needed to set up more strict control.

At the start of the two-week talks on Monday, the Serbian government and the IMF mission agreed that all revisions carried out so far have been successful and that the country needs to establish a firm fiscal discipline.

The officials also assessed that salary raise for employees in Serbia needs to be in keeping with the country's established budget and economic policy.

During the talks between IMF representatives and Prime Minister Mirko Cvetković, Deputy Prime Minister Jovan Krkobabić, Finance Minister Diana Dragutinović and Labor and Social Policy Minister Rasim Ljajić, it was mentioned that the officials might discuss the possibilities for the country's future cooperation with the IMF.