A quarter of the IMF debt paid

The NBS paid 190 million dollars to the IMF ahead of schedule, a quarter of Serbia’s debt to the financial institution.

Source: FoNet

Monday, 03.07.2006.

12:27

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A quarter of the IMF debt paid

The Serbian Government did not seek a new financial arrangement with the IMF, due to its estimate that new debts should be avoided prior to the announcement of parliamentary elections.

Jelašić says that the IMF supports measures previously undertaken by the National Bank of Serbia, and that it is in accordance with the central bank’s plans to start a new monetary policy regime in the second half of the year.

This regime incorporates "targeting" the inflation, in other words, determining goals in order to reach a seven to ten perc ent base inflation this year, and four to seven per cent next year.

Jelašić expects the NBS and the Serbian Ministry of Finance to maintain good cooperation in determining and implementing those goals.

The first half of this year saw 5,7 per cent inflation, with a base inflation of 3,7 percent. A possible relaxation of the monetary policy will be reviewed in September and will depend on the expected inflation in the fourth quarter, the Serbian Government's investment program, and administrative prices trends.

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