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IMF and Serbia continue, extend 4-billion-dollar credit line
Nov 3, 2009, 19:30 GMT
Belgrade - The International Monetary Fund (IMF) agreed to continue and extend a 4-billion-dollar standby credit facility to Serbia, the Serbian government said in a statement Tuesday.
The IMF mission was due to formally complete the review of Serbian economic policies on Wednesday, after 10 days of negotiations. IMF and Serbian officials are to announce the details of the agreed programme at a joint press conference on Wednesday.
Under the agreement, the IMF should disburse the second and third of the four 1-billion-dollar tranches. The second tranche was delayed in September, because of an IMF request that Belgrade curb its budget deficit in 2010 and beyond.
Since Serbia does not need all the available funds at once, it agreed with the IMF to delay payments further, extending the standby loan by six months until October 2011, radio B92 reported.
It said that the IMF allowed Serbia a budget deficit of 4 per cent of gross domestic product (GDP) in 2010, 0.5 per cent less than it agreed to in 2009. The two sides also agreed on reforms of payments from Serbia's pension and disability funds.
IMF and Serbia agreed on the standby credit in March and Belgrade drew the first tranche in May to boost its dwindling foreign currency reserves and prop the faltering national currency.
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