IMF approves review of stand-by

The Executive Board of the International Monetary Fund (IMF) reached a positive decision Monday on the fourth review of Serbia's economic performance. It concerned the conditions under the stand-by arrangement, worth a total of EUR 2.9bn, that Serbia has with the financial organization. IMF approves review of stand-by The fourth review under the stand-by arrangement enables the disbursement of another EUR 380mn intended to boost Serbia's foreign exchange reserves. IMF Deputy Managing Director Murilo Portugal said that Serbia's economic performance "continues to be broadly satisfactory, in spite of a weaker macroeconomic environment during the first half of 2010," the IMF press release points out. "Serbia's external financing position has improved markedly, the reserve position is broadly comfortable, and inflation remains in check," Portugal assessed. He added that "notwithstanding these positive developments, Serbia remains vulnerable to adverse financial spillovers from the region." According to him, the authorities remain strongly committed to the structural reform agenda aimed at improving the business environment, promoting private investment, and enhancing the country's export capacity, including through privatization and upgrading of infrastructure. "Only EUR 56mn" Serbia will only withdraw EUR 56mn or 15 percent of the IMF funds made available, the National Bank of Serbia (NBS) said in a statement on Belgrade on Tuesday. In line with the Memorandum of Understanding between Serbia and the IMF, the NBS made this decision "based on the stable levels of foreign exchange reserves and the need to minimize the costs of the credit arrangement". This withdrawal will bring total disbursements under the program to EUR 1.47mn or 263 percent of the country's quota with the IMF. "The NBS will be able to draw the remainder of the fourth tranche at any time, if it estimates that this is necessary to implement the program and the economic policy agreed on with the IMF," it is said in the statement. The NBS pointed out that on June 28 the IMF Executive Board gave a positive assessment of Serbia's economic performance under the Stand-By Arrangement, completing its fourth review and clearing the disbursement of the fourth tranche starting June 30. In May 2009, the IMF approved a Stand-By Arrangement in the amount of EUR 2.9bn intended to boost Serbia's foreign exchange reserves. The agreement expires in April 2011.

IMF approves review of stand-by

The fourth review under the stand-by arrangement enables the disbursement of another EUR 380mn intended to boost Serbia's foreign exchange reserves.

IMF Deputy Managing Director Murilo Portugal said that Serbia's economic performance "continues to be broadly satisfactory, in spite of a weaker macroeconomic environment during the first half of 2010," the IMF press release points out.

"Serbia's external financing position has improved markedly, the reserve position is broadly comfortable, and inflation remains in check," Portugal assessed.

He added that "notwithstanding these positive developments, Serbia remains vulnerable to adverse financial spillovers from the region."

According to him, the authorities remain strongly committed to the structural reform agenda aimed at improving the business environment, promoting private investment, and enhancing the country's export capacity, including through privatization and upgrading of infrastructure.

"Only EUR 56mn"

Serbia will only withdraw EUR 56mn or 15 percent of the IMF funds made available, the National Bank of Serbia (NBS) said in a statement on Belgrade on Tuesday.

In line with the Memorandum of Understanding between Serbia and the IMF, the NBS made this decision "based on the stable levels of foreign exchange reserves and the need to minimize the costs of the credit arrangement".

This withdrawal will bring total disbursements under the program to EUR 1.47mn or 263 percent of the country's quota with the IMF.
"The NBS will be able to draw the remainder of the fourth tranche at any time, if it estimates that this is necessary to implement the program and the economic policy agreed on with the IMF," it is said in the statement.

The NBS pointed out that on June 28 the IMF Executive Board gave a positive assessment of Serbia's economic performance under the Stand-By Arrangement, completing its fourth review and clearing the disbursement of the fourth tranche starting June 30.

In May 2009, the IMF approved a Stand-By Arrangement in the amount of EUR 2.9bn intended to boost Serbia's foreign exchange reserves. The agreement expires in April 2011.