Macro-stability as goal of new arrangement with IMF

A Serbian delegation, headed by the governor of the National Bank of Serbia, Jorgovanka Tabakovic, and Serbian Minister of Finance, Dusan Vujovic, met with Tao Zhang, Deputy Managing Director of the International Monetary Fund, in Washington D.C.

The topic of the meeting, held on the margins of the spring session of the IMF and the World Bank, was the analysis of the results achieved after the completion of the three-year precautionary standby arrangement that Serbia had signed with this international financial institution, and defining the elements preceding the agreements related to the new arrangement in the form of instruments of coordination of economic policies, the Ministry of Finance announced.

“In order to maintain fiscal stability and at the same time, secure quality support to economic growth, we need to continue the talks about the future arrangement”, Zhang said and added that the dedication showed by the Government of Serbia in carrying out the reforms was proof of its clear intention of overcoming all challenges in order for the country to progress even further.

Tabakovic pointed out that the preceding period had been marked by good results in the field of strengthening macroeconomic stability and the outlook of the local economy under the conditions of full coordination of the monetary and the fiscal policies. The inflation has been kept at a quite low level, Serbia’s risk premium is also at its lowest, and the country’s credit rating is favourable as well, the press release says.

Tabakovic also noted the fact that the positive outlook of the local economy results has resulted in a heightened interest shown by investors in long-term investments in Serbia, thereby validating the results achieved in improving the local business environment, as well as the progress on global competitiveness lists.

Summing up the accomplished results, Vujovic underlined the results achieved in key structural reforms but also those yet to come.

“The achieved results are a clear signal to investors to invest in the Serbian economy, as Serbia is, without doubt, heading down the right path in that respect”, the minister said and added that the attention was now directed at a series of analyses and talks which aim was to find the best way to overcome the remaining challenges, such as solving the status of the companies undergoing restructuring, improving the efficiency of public companies and reforming the Tax Administration.

Vujovic also mentioned that the cooperation between the Government of Serbia and the IMF was successful on all levels and expressed positive expectations regarding the new arrangement with the IMF, which, in addition to not containing a financial component, aims to maintain the achieved macroeconomic and fiscal stability in the continuation of initiated projects and reforms.

(Blic, eKapija, 21.04.2018)





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