Preliminary agreement with the IMF Mission reached

Serbian Finance Minister Mladjan Dinkic told Beta news agency today that a preliminary agreement was reached during the talks in Washington, and that Serbia “has unblocked its relations with the International Monetary Fund (IMF) after nine months”.

“Today, we had a very successful day in Washington and we bring good news to our citizens. We managed to reach a preliminary agreement with the IMF Mission, and thus unblock our relations with this international monetary institution”, said Dinkic.

According to him, “Serbia last concluded an agreement with the IMF last July, and since then, due to the political crisis in the country, foreign relations came to a standstill”.

Dinkic pointed out the agreement is to be verified at the IMF board, at the beginning of June and added that Serbia and Montenegro were supposed to get two installments of IMF credit – worth a total of 140 million USD.

“The IMF Mission has very positively estimated the Governments’ new economic policy, primarily in the area of fiscal policy, where we have managed to have a completely balanced budget during the first four months of the year, i.e. a budget with no deficits. We owe that primarily to the good level of revenue collection and measures of intensive control currently being undertaken by the Customs and Tax Administration,” said Dinkic.

According to him, the deficit in the Serbian budget has been reduced from the planned 3.6% of GDP to 2.5 %.

“This fact is a great acknowledgment to the new Government and the first international success, which this Government achieved only a month and a half after its formation”, said Dinkic and added that this is “a turning point in the further economic development of Serbia, since this agreement opened the doors to the EU funds, and on Monday we expect talks with the World Bank and far larger investments into Serbia”.