| Serbia won't draw IMF money – minister |
| 5 November 2009 | 12:14
| Source:
B92, Beta |
BELGRADE --
Serbia most likely won't draw the remaining money from the USD 2.9bn standby arrangement with the IMF, says Mlađan Dinkić.
 | A file photo of Mlađan Dinkić (FoNet)
|
The economy minister told B92 in Belgrade on Thursday that the agreement reached with a visiting IMF mission, confirmed yesterday, is important for Serbia, and that it demonstrates the country's macroeconomic stability.
Serbia enjoys full financial stability, Dinkić continued, along with strong hard currency reserves of EUR 9.7bn – EUR 1.7bn up on last year – while EUR 600mn worth of savings, withdrawn from banks earlier this year, have been deposited back.
"In that context we most likely won't even draw the money that the IMF has put at Serbia's disposal, that is, we'll use a minimal amount which the central bank believes is necessary, since we do not need money for our hard currency reserves."
Serbia has already used EUR 788mn from the arrangement, and it was agreed that the remaining sum be drawn in equal tranches.
"The agreement is important because we've demonstrated there is macroeconomic stability in Serbia. That's a guarantee that the dinar will remain stable, that inflation will go down, and that investors can invest in the coming period," said Dinkić.
The deal reached with the IMF obligates Serbia to freeze public sector salaries and pensions in 2010, start reforming the country's pension system, "and provide credibility for its fiscal policy".
The minister also stated that the Serbian government is "handling the crisis well", and noted that some other governments in the region and Europe collapsed because of the crisis.
Asked why the details of the USD 1bn loan from Russia have not been agreed upon in Moscow recently, with negotiations set to continue in Belgrade, he said that the Russian side "probably offered conditions that are not acceptable".
Dinkić then added that he "would not say whether he expected something of the sort", and concluded that he "does not interfere where he is not invited".
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