IMF delegation to stay in Belgrade until March 6 – Negotiations on carrying out agreed reforms to follow

The delegation of the International Monetary Fund (IMF) will be staying in Belgrade and negotiating the control of carrying out the current three-year precautionary arrangement until March 6, the IMF Belgrade office reported on February 27.

Prime Minister Aleksandar Vucic said that the International Monetary Fund didn't have any complaints regarding Serbia's public finance, but that they found the situation in several state companies and banks to be problematic.

According to the prime minister, the IMF has noted problems in MSK, RTB Bor and some banks where the issue of advisers needs to be solved, but it has no objections to the way the banking system is functioning.

When asked whether there was talk about salary and pension raises, Vucic said that there had not been talk about that and added that citizens shouldn't worry, as earnings would grow considerably as soon as the economic growth increased. He pointed out that one of the crucial tasks in the next period would be to raise the private sector, where 1.4 million people were employed.

The private sector, as he said, is still relatively small and supports 1.75 million pensioners and 850,000 employees in the public sector.

The head of the IMF Mission to Serbia, James Roaf, announced that the IMF would provide professional support to the Council of the Government of Serbia for the growth of GDP. It was estimated during the talks that Serbia's goal should be to achieve an annual GDP growth of 4-5%, and Vucic presented them with the measures for GDP growth in the next period.

The IMF Mission last visited Belgrade in late October 2016 on the occasion of the sixth review of the said arrangement. The review proved successful and it was estimated that Serbia had achieved fiscal stability, but that structural reforms needed to continue.

The IMF arrangement of February 2015, worth EUR 1.2 billion, obliges the Government of Serbia to carry out fiscal consolidation and restructure the public sector. It is expected that the Government of Serbia will consider the possibility of making a new arrangement with the IMF.

The chairman of the NBS Governors Council, Nebojsa Savic, said that it would be good for the arrangement with the institution to continue and pointed out the importance of Serbia's improved results in the World Bank's Doing Business list, along with the monetary stability and improvements in the fiscal segment.

James Roaf and the members of the IMF mission will take part in the Kopaonik Business Forum for the first time this year. The forum will be held from March 7 till 9 at the Grand Hotel.

Međunarodni monetarni fond - MMF Beograd

Vlada Republike Srbije

Narodna banka Srbije Beograd

Svetska Banka-WB Beograd

International Monetary Fund

IMF

Serbia IMF arrangement

IMF Mission

James Roaf

Kopaonik Business Forum

fiscal consolidation

restructuring public sector

NBS Governors Council

Nebojsa Savic

IMF arrangement

Doing Business list