MMF agreement approval postponed - MMF Directors Board will most probably decide during January, 2009 about the new agreement with Serbia

Governer of the National Bank of Serbia (NBS), Radovan Jelasic, announced today (December, 12th, 2008) that Directos Board of the International Monetary Fund (MMF), would most probably decide about the new agreement with Serbia during January, next year.

- The session of MMF Directors Board has been postponed for technical reasons, even tough it was announced for December, 19th, when agreement with Serbia should have been approved - said Jelasic.

MMF made agreement with Serbia in November, out of precaution, according to which was planned withdrawal of around 520 million USD in case Serbia needed financial support of this International financial institution.

Jelasic pointed out that the condition of MMF for approving this agreement was ratification of two documents between NBS and the Government of Serbia.

- By mid January, NBS and the Government of Serbia will sign Document of responsibility in the goal to make targetted inflation in 2009, of 8%, with possible plus-minus 2%, as well as Document of financial sector stability - stated the Governer.

The Document related to inflation should show, according to his words, how much responsibility would the Government take for the growth of prices which are under control of the state.

- This, practically means, that all prices under state's control, such as the prices of electrical energy, petrol derrivates, utility services, and groceries, should not be increased in the next year more than around 13%, points out the Governer.

The second Document, related to financial sector, should predict the responsibility of NBS and the Government in the case that this sector's stability gets in question under unpredictable circumstances.