Board of Managers of IMF to discuss arrangement with Serbia today

The Board of Managers of the International Monetary Fund will be discussing “stand-by” arrangement with Serbia today (January 16, 2009). It is likely that the arrangement will be approved since the Government of Serbia has met all the conditions set by IMF.

Following the approval of the arrangement, IMF’s report about Serbia and the letter of intent that will be signed by the representatives of the Government of Serbia will be published following the approval of the arrangement.

The Government of Serbia reached the agreement with IMF on 15-month "stand by" arrangement in mid-November. This agreement anticipates 520m USD worth of credit support to Serbia if needed.

The Head of IMF Mission, Albert Jager, said on that occasion that that arrangement would be valid prior to March 2010. He also said that Serbian authorities had taken that loan as a precaution.

The basic request of IMF was that the budget deficit of Serbia in 2009 amounts to maximum 1.5% of gross national product.

As economist Jurij Bajec announced earlier, there are three types of arrangement with IMF – consulting, "stand by" and credit arrangement. "Stand by" arrangement anticipates granting of the agreed amount of funds to be withdrawn if needed, and Serbia will withdraw the money in case of the problem with the foreign debt repayment.