Serbia needs Arrangement with IMF

BELGRADE - NBS Governor Jorgovanka Tabakovic stated that one of the first goals of Lazar Krstic, will be signing an arrangement with the IMF. National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic stated on Saturday that one of the first goals of Lazar Krstic, future minister of finance, will be signing an arrangement with the International Monetary Fund (IMF) which Serbia needs besides its foreign currency reserves of EUR 10.7 billion. Serbia needs Arrangement with IMF Tabakovic told TV Pink that this arrangement is necessary not only for the loan, but also because the country needs a good advisor and controller. The NBS governor said that she is glad that Krstic has accepted the position of the minister of finance. As for the government reshuffle, she said that the central bank should provide a stable framework for the implementation of the economic policy for the reshuffled government. “This implies adjustment of expenditures to realistic possibilities, and this is the most difficult task for the government to spend in line with the possibilities in conditions of high budget deficit which it has to finance,” the governor said. The inflation is on a downward track and by the end of October it will be returned to the goal framework of four percent plus/minus 1.5 percent, she said, noting that the average monthly inflation stands at 0.2 percent. Speaking about the possibility of limiting the height of banks' interest rates, Tabakovic said that the NBS can only influence the reference interest rate, adding that in the market economy the administrative limitation of banking interest rates has almost never brought advantages for the citizens. Tanjug Tanjug

Serbia needs Arrangement with IMF

Tabakovic told TV Pink that this arrangement is necessary not only for the loan, but also because the country needs a good advisor and controller.

The NBS governor said that she is glad that Krstic has accepted the position of the minister of finance.

As for the government reshuffle, she said that the central bank should provide a stable framework for the implementation of the economic policy for the reshuffled government.
“This implies adjustment of expenditures to realistic possibilities, and this is the most difficult task for the government to spend in line with the possibilities in conditions of high budget deficit which it has to finance,” the governor said.

The inflation is on a downward track and by the end of October it will be returned to the goal framework of four percent plus/minus 1.5 percent, she said, noting that the average monthly inflation stands at 0.2 percent.

Speaking about the possibility of limiting the height of banks' interest rates, Tabakovic said that the NBS can only influence the reference interest rate, adding that in the market economy the administrative limitation of banking interest rates has almost never brought advantages for the citizens.