IMF requests assessment of announced social measures

The International Monetary Fund (IMF) will assess the package of measures recently announced by Serbian President Aleksandar Vucic, such as reducing the prices of medicines and one-time payments to social categories, the institution told Nova Ekonomija.

According to Lev Ratnovski, Head of the IMF Office for Serbia, the institution will assess the announced package in the coming period, in the context of obligations and goals under the PCI arrangement.

The PCI arrangement, or the Policy Coordination Instrument, is an advisory arrangement between Serbia and the IMF. The latest PCI arrangement runs from December 2024 to the end of 2027.

– Fiscal policy under the PCI is based on the program’s fiscal framework, including compliance with the three percent limit for the fiscal deficit and the fiscal rule for pensions, which also includes refraining from ad hoc payments to pensioners. Although Serbia’s public debt is relatively low, and the announced package is modest from the point of view of fiscal sustainability, maintaining a credible fiscal policy remains essential in the coming period – says Ratnovski.

President Aleksandar Vucic announced new measures - one-time assistance for pensioners and beneficiaries of various social benefits and a reduction in the cost of medicines. This package of measures will, according to him, cover more than three million citizens.

The new package of measures, according to him, will cost the state more than 600 million euros.

Međunarodni monetarni fond-MMF Beograd

Predsedništvo Republike Srbije

International Monetary Fund

IMF

President of Serbia

Aleksandar Vučić

Lev Ratnovski