IMF approves loan tranche to Serbia

The International Monetary Fund (IMF) has approved a loan tranche of EUR 349.6mn for Serbia.

This international financial institution also stated that the effects of the economic crisis have for now been successfully curbed in the country.

The IMF board of directors has finished the second revision of the Serbian economy, based on the program of the stand-by arrangement.

The board took into consideration the fact that Serbia had not fulfilled the criteria for the budget deficit at the end of September and approved an increase of the deficit for 2009 to 4.5 percent of the GDP.

After discussing the economic situation in Serbia, IMF Deputy Managing Director Takatoshi Kato said that the effects of the global financial crisis and economic crisis have thus far been successfully curbed.

Kato added that the economic policies of the Serbian government, with the support of the stand-by arrangement and activities for stabilizing the market, increased internationa reserves, eased pressure on the foreign currency market, and helped mobilize important international financial aid with the goal of supporting the Serbian budget and Serbia’s economic recovery.

“The program of the Serbian government has the goal of overcoming effects of the economic crisis and restoring public finances in the mid-term,” Kato said.

Serbia has thus far withdrawn about EUR 800mn from the IMF loan arrangement, with EUR 2.2bn left in the stand-by that is expected to be added to the foreign currency reserves in order to stabilize the exchange rate of the domestic currency.

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