The Serbian government and a delegation of the International Monetary Fund (IMF) announced on Wednesday that they reached agreement on a new advisory arrangement which will be in place for the next 30 months.
IMF delegation chief James Roaf told a press conference that the Policy Coordination Instrument (PCI) is aimed at maintaining macro-economic and financial stability and achieving progress in the ambitious plans for structural and institutional reforms which will lead to faster growth, more jobs and higher living standards.
According to the IMF web site, the PCI is a non-financing tool open to all members of the International Monetary Fund.
Roaf’s delegation came to Belgrade to finalize talks on a new program with Serbia covering macro-economic policy and reforms which the IMF executive board will decide on in mid-July.
Roaf said that Serbia’s macro-economic prospects are good with a growth of 4.6 percent y.o.y. in the first quarter and expectations of at least 3.5 percent at annual level this year.
“Fiscal policy under the PCI is directed towards maintaining the positive results to secure a stable downwards trend for the public debt with support for quicker sustainable growth,” he said and added that Serbia’s public finances are expected to show a surplus this year. Serbia’s previous precautionary arrangement with the IMF was worth 1.2 billion Euro and expired last February.