The Executive Board of the International Monetary Fund (IMF) has completed the second review of Republic of Serbia’s economic performance under the Stand-By Arrangement (SBA), the IMF reported announcing a third revision from October 29 to November 10.
Serbian Prime Minister Aleksandar Vucic said the IMF's positive assessment represented a step closer to Serbia's overcoming the crisis.
"Serbia continues to make good progress under the precautionary Stand-by Arrangement. Growth has turned positive despite the significant fiscal tightening this year, the current account deficit has narrowed to a sustainable level, and confidence has improved. At the same time, this good performance remains vulnerable to downside risks. Decisive implementation of all program measures is essential for achieving public debt sustainability, bolstering financial sector resilience and improving competitiveness," IMF Deputy Managing Director and Acting Chair Min Zhu said in a statement which was carried by Radio Television Serbia.
The IMF said the space for pension and public sector wage increases was limited and any targeted increases should be contingent on timely progress in public sector.
The completion of the review will make available the cumulative amount of EUR 531 million. The Serbian authorities have indicated their intention to continue treating the arrangement as precautionary.
The Executive Board approved the 36-month EUR 1.2 billion SBA for Serbia on February 23, 2015.