Serbia well-prepared for new crisis - IMF rep

Serbia is rather well-prepared to deal with a potential new economic crisis, Head of the International Monetary Fund (IMF) Mission to Serbia Albert Jaeger says. “The country's deficit is considerably lower, the exchange rate is more stable, and Serbia also has foreign exchange and fiscal reserves and a stand-by arrangement,” he pointed out. Serbia well-prepared for new crisis - IMF rep Jaeger told Belgrade-based daily Danas that the country's external deficit was far lower that it was back in 2008, when it totaled over 20 percent of the GDP. “The exchange rate was adjusted since 2008 and is now by far more favorable and Serbia now still has relatively high foreign exchange reserves and a well-capitalized and highly solvent banking system, which means that Serbia does not need to be extremely concerned, while fiscal cash reserves following the issue of USD 1bn worth of bonds can maintain the financial market in place,” the head of the IMF Mission stressed. The IMF representative also recalled that the stand-by arrangement was still in force and although it was closed out of precaution, it could still be used if the situation started deteriorating.

Serbia well-prepared for new crisis - IMF rep

Jaeger told Belgrade-based daily Danas that the country's external deficit was far lower that it was back in 2008, when it totaled over 20 percent of the GDP.

“The exchange rate was adjusted since 2008 and is now by far more favorable and Serbia now still has relatively high foreign exchange reserves and a well-capitalized and highly solvent banking system, which means that Serbia does not need to be extremely concerned, while fiscal cash reserves following the issue of USD 1bn worth of bonds can maintain the financial market in place,” the head of the IMF Mission stressed.

The IMF representative also recalled that the stand-by arrangement was still in force and although it was closed out of precaution, it could still be used if the situation started deteriorating.