Prime minister, IMF delegation meet

Serbian Prime Minister Mirko Cvetkovic today met with an International Monetary Fund (IMF) mission led by IMF Mission to Serbia Chief Albert Jaeger. Serbia and the IMF will continue their cooperation by signing a new precautionary arrangement, whose framework will be harmonized during the IMF delegation's visit to Belgrade, it was released after the meeting. Prime minister, IMF delegation meet According to a release issued by the government press office, the prime minister informed the IMF representatives about the current economic situation in Serbia. The meeting focused on measures the government will take in the coming period to maintain macroeconomic stability, reads the release. Official talks between representatives of the Serbian government and the IMF mission started at 9:00 CET Wednesday with a plenary meeting at the National Bank of Serbia (NBS). The plenary session included NBS Governor Dejan Soskic, who is Serbia's representative to the IMF, Deputy Prime Ministers Bozidar Djelic and Jovan Krkobabic, Economy and Regional Development Minister Nebojsa Ciric, and President of the NBS Governor's Council Bosko Zivkovic. Serbian officials and the IMF mission will discuss current macroeconomic trends, areas where further reforms will need to be conducted under the new arrangement, as well as fiscal policy. As far as structural reforms, the focus will be on government-owned companies, and the heath care, education and pension systems. During the mission's visit, preliminary talks will also start on Serbia's new precautionary arrangement. The second mission should complete the negotiations in the end of the summer. Acording to earlier announcements, the IMF mission will stay in Belgrade until May 27. “The new arrangement with the IMF doesn’t bring money but it gives Serbia credibility in the eyes of foreign investors,” the PM’s adviser Jurij Bajec told B92. “You gain credibility when the IMF says that the Serbian government and central bank are implementing the agreed policy. This is the main reason in this case and of course a favorable circumstance is the fact that the country is not borrowing more because of it. The basic thing is that commonly agreed economic policies will be regularly and more intensely controlled,” Bajec explained. The IMF representatives said ahead of their visit to Serbia that they were worried about unrealistic promises given to citizens in the pre-election year. In an article published by daily Politika, Jaeger and International Monetary Fund (IMF) Resident Representative in Serbia Bogdan Lissovolik said that the Serbian politicians were more than ready to promise citizens a better life “through unrealistic promises about high wages and pensions or about low taxes”. The IMF experts are concerned that public spending could significantly increase in the pre-election year. Bajec, however, believes that there is no reason for concern. “They are clearly warning us to make sure not to overstep certain criteria of spending budget funds in the period ahead of us, since it is a pre-election year, which the state already did in the previous agreement with the IMF by passing the Law on Budget System and introducing fiscal regulations that limit some spending of what was agreed because of its own interest,” he pointed out. It is expected that the talks with the IMF will take several months. IMF representatives and Mirko Cvetkovic (Tanjug)

Prime minister, IMF delegation meet

According to a release issued by the government press office, the prime minister informed the IMF representatives about the current economic situation in Serbia.

The meeting focused on measures the government will take in the coming period to maintain macroeconomic stability, reads the release.

Official talks between representatives of the Serbian government and the IMF mission started at 9:00 CET Wednesday with a plenary meeting at the National Bank of Serbia (NBS).

The plenary session included NBS Governor Dejan Šoškić, who is Serbia's representative to the IMF, Deputy Prime Ministers Božidar Đelić and Jovan Krkobabić, Economy and Regional Development Minister Nebojša Ćirić, and President of the NBS Governor's Council Boško Živković.

Serbian officials and the IMF mission will discuss current macroeconomic trends, areas where further reforms will need to be conducted under the new arrangement, as well as fiscal policy.

As far as structural reforms, the focus will be on government-owned companies, and the heath care, education and pension systems.

During the mission's visit, preliminary talks will also start on Serbia's new precautionary arrangement.

The second mission should complete the negotiations in the end of the summer.

Acording to earlier announcements, the IMF mission will stay in Belgrade until May 27.

“The new arrangement with the IMF doesn’t bring money but it gives Serbia credibility in the eyes of foreign investors,” the PM’s adviser Jurij Bajec told B92.

“You gain credibility when the IMF says that the Serbian government and central bank are implementing the agreed policy. This is the main reason in this case and of course a favorable circumstance is the fact that the country is not borrowing more because of it. The basic thing is that commonly agreed economic policies will be regularly and more intensely controlled,” Bajec explained.

The IMF representatives said ahead of their visit to Serbia that they were worried about unrealistic promises given to citizens in the pre-election year.

In an article published by daily Politika, Jaeger and International Monetary Fund (IMF) Resident Representative in Serbia Bogdan Lissovolik said that the Serbian politicians were more than ready to promise citizens a better life “through unrealistic promises about high wages and pensions or about low taxes”. The IMF experts are concerned that public spending could significantly increase in the pre-election year.

Bajec, however, believes that there is no reason for concern.

“They are clearly warning us to make sure not to overstep certain criteria of spending budget funds in the period ahead of us, since it is a pre-election year, which the state already did in the previous agreement with the IMF by passing the Law on Budget System and introducing fiscal regulations that limit some spending of what was agreed because of its own interest,” he pointed out.

It is expected that the talks with the IMF will take several months.