Serbia awaits USD 400 million - First arrangement with IMF, then World Bank loan for budget

In order to receive a loan from the World Bank to prop up the budget, Serbia must first have an agreed arrangement with the IMF, said World Bank Country Manager for Serbia Loup Brefort.

If the government fails to reach an agreement with the IMF, the money intended for Serbia will not be lost, but only redirected to other projects, he said in an interview with the national broadcasting company RTS.

- But I believe that the plan A, which calls for an arrangement to be reached with the IMF as a precondition for our loan as well as the Russian loan for your budget, is the best scenario for Serbia - said Brefort.

When asked if there was ground for Serbian government's optimistic belief that a new arrangement with the IMF was possible, Brefort replied he hoped that an agreement would be reached, although there might be certain obstacles such as bigger budget deficit than planned.

Last week the World Bank extended a USD 100 million loan for the rehabilitation of roads in Serbia, and announced the possibility of approving a USD 400 million loan to prop up Serbia's budget if necessary requirements were met.