IMF decides on successful completion of second review of arrangement with Serbia

The Executive Board of the International Monetary Fund (IMF) in Washington has decided on the successful completion of the second review of the Policy Coordination Instrument of the current arrangement with Serbia, stated Finance Minister Sinisa Mali.

He assessed that the IMF’s decision was confirmation that the Serbian economy was stable and that all reforms were being completed.

– Serbia’s performance shows that in just 15 years we have covered a difficult path from bankruptcy to a country with an investment credit rating. We know very well how painful the cuts and difficult decisions were on this path, but the results we have are the best confirmation that we are on the right path, which we will continue to follow – said Mali, as announced by the relevant ministry.

The statement reads that the IMF states that Serbia is pursuing a cautious macroeconomic policy and has strong “buffers that are extremely helpful in this challenging period.” Under the current arrangement, the fiscal program is based on a fiscal deficit of no more than three percent of GDP during the investment program until 2027 and 2.5% of GDP during 2028 and 2029.

– In this way, public spending priorities will be balanced with fiscal discipline and public debt will be further reduced. Accompanying structural reforms and reforms of state-owned enterprises, including the energy sector, will contribute to mitigating fiscal risks – the ministry stated.

The Policy Coordination Instrument arrangement was approved for Serbia in December 2024 and will last until the end of 2027, i.e. 36 months. The current program is advisory in nature and does not involve the use of financial resources.

Međunarodni monetarni fond-MMF Beograd

Ministarstvo finansija Republike Srbije

International Monetary Fund

IMF

Siniša Mali

Policy Coordination Instrument of the current arrangement with Serbia