IMF official: Serbia yet to implement reforms

IMF's permanent representative in Serbia Bogdan Lissovolik says the two-year arrangement with Serbia has "bought some time" for the Serbian government.

Izvor: Tanjug

Wednesday, 13.04.2011.

11:37

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IMF's permanent representative in Serbia Bogdan Lissovolik says the two-year arrangement with Serbia has "bought some time" for the Serbian government. But that the country is yet to implement structural reforms, he warned. IMF official: Serbia yet to implement reforms The loan arrangement, worth close to EUR 3bn, is due to expire in a few days. During the meeting of the Belgrade Chamber of Commerce steering committee, Lissovolik pointed out that a new arrangement which would be closed out of precaution should constitute an anchor for Serbia's economic policy and make room for structural reforms in the fields of education, healthcare and public enterprise restructuring. These areas do not fall under the jurisdiction of IMF's immediate expertise and Serbia could use assistance of the World Bank, the EU and the European Bank for Reconstruction and Development, Lissovolik indicated and noted that a problem in relation to this matter could emerge in the form of the government's 'limited appetite' when it comes to the implementation of such reforms in the period before the elections. He pointed out that the arrangement with the IMF prevented the global economic crisis from causing deeper consequences in Serbia but that there is still a lot that needs to be done, especially with regard to inflation rate reduction and employment rate increase. Lissovolik noted that structural reforms in the public sector were not conducted at the recommended pace, that employee rationalization was not satisfactory, while pension reform was too limited and public investments were sacrificed because of other expenses. The IMF representative underscored that inflation came to be the chief problem for Serbia's economic policy, while main price shocks keep coming from the domain of food industry, which is why the government can implement a number of measures so as to stabilize the prices by an adequate market and anti-monopoly policy. Bogdan Lissovolik (Beta)

IMF official: Serbia yet to implement reforms

The loan arrangement, worth close to EUR 3bn, is due to expire in a few days.

During the meeting of the Belgrade Chamber of Commerce steering committee, Lissovolik pointed out that a new arrangement which would be closed out of precaution should constitute an anchor for Serbia's economic policy and make room for structural reforms in the fields of education, healthcare and public enterprise restructuring.

These areas do not fall under the jurisdiction of IMF's immediate expertise and Serbia could use assistance of the World Bank, the EU and the European Bank for Reconstruction and Development, Lissovolik indicated and noted that a problem in relation to this matter could emerge in the form of the government's 'limited appetite' when it comes to the implementation of such reforms in the period before the elections.

He pointed out that the arrangement with the IMF prevented the global economic crisis from causing deeper consequences in Serbia but that there is still a lot that needs to be done, especially with regard to inflation rate reduction and employment rate increase.

Lissovolik noted that structural reforms in the public sector were not conducted at the recommended pace, that employee rationalization was not satisfactory, while pension reform was too limited and public investments were sacrificed because of other expenses.

The IMF representative underscored that inflation came to be the chief problem for Serbia's economic policy, while main price shocks keep coming from the domain of food industry, which is why the government can implement a number of measures so as to stabilize the prices by an adequate market and anti-monopoly policy.

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