Serbian newspaper Vecernje novosti reported that the redrafting of the future budget will probably take place without the supervision of the International Monetary Fund, which have still not agreed a date to visit Serbia for talks over unfreezing a $1.3bn stand-by loan.
The paper said it is still not known whether the delegation which led the negotiations with Serbia will remain in the same line-up. What is clear is that the subject of the negotiations is a totally new arrangement, and that the new government will not discuss what was previously agreed with the IMF. If it is any consolation, those who understand the workings of the Fund say it is better that there is some delay in negotiations. They say it is beneficial to see what they hope will be the first positive results of the fiscal consolidation measures.
The paper says Serbia have come a long way since the last IMF agreement, which it was unable to fulfil. It exceeded the recommended budget “deficit” of 4.25 per cent of Gross Domestic Product long ago. Back in February the estimate was that it would exceed the plan by at least 1 per cent. The deficit has not pushed its way up to at least 7 per cent of GDP. The new government’s target is to get the level under 4 per cent during the course of 2013. But in the meantime we must give the International Monetary Fund strong promises.
“Viewed from the position of macroeconomic stability, the IMF agreement is very important,” says Nikola Altiparmakov, member of the Fiscal Council. “That is why I believe that there will be talks with the IMF, and it is only a question of when. There will definitely be negotiations.”
Source Balkans
