Serbia to seek new IMF arrangement

The Serbian government and a visiting IMF mission will this week conclude talks on the final review of the current stand-by arrangement.

Izvor: Beta

Monday, 21.02.2011.

10:40

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The Serbian government and a visiting IMF mission will this week conclude talks on the final review of the current stand-by arrangement. The EUR 2.9bn loan, of which Serbia withdrew EUR 1.5mn, will expire in April. Serbia to seek new IMF arrangement Serbia and the IMF are then expected to start negotiations on a new arrangement, which will be requested by the government, and would not mean added borrowing but would constitute for a "precautionary arrangement". However the details of its duration have not been announced. Meanwhile, PM Mirko Cvetkovic has said that the country should not enter into a new arrangement with the IMF, as it has not spent all the money at its disposal. But reports said that "experts and National Bank of Serbia Governor Dejan Soskic" think otherwise. A new arrangement would be a positive signal to investors, said Soskic, with the IMF support contributing to speedier structural reforms and to more favorable conditions for the country to take out loans. A precautionary arrangement would mean that the international financial organization would regularly control Serbia's macroeconomic situation and that favorable loans could be drawn in case of instability in the world financial markets. The current visit of an IMF mission started on February 9, and the talks saw warnings for the government to harmonize public spending with the possibilities of the 2011 budget, and establish firm fiscal discipline.

Serbia to seek new IMF arrangement

Serbia and the IMF are then expected to start negotiations on a new arrangement, which will be requested by the government, and would not mean added borrowing but would constitute for a "precautionary arrangement".

However the details of its duration have not been announced.

Meanwhile, PM Mirko Cvetković has said that the country should not enter into a new arrangement with the IMF, as it has not spent all the money at its disposal.

But reports said that "experts and National Bank of Serbia Governor Dejan Šoškić" think otherwise.

A new arrangement would be a positive signal to investors, said Šoškić, with the IMF support contributing to speedier structural reforms and to more favorable conditions for the country to take out loans.

A precautionary arrangement would mean that the international financial organization would regularly control Serbia's macroeconomic situation and that favorable loans could be drawn in case of instability in the world financial markets.

The current visit of an IMF mission started on February 9, and the talks saw warnings for the government to harmonize public spending with the possibilities of the 2011 budget, and establish firm fiscal discipline.

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