An IMF mission will visit Serbia on May 8 and if the talks prove successful, the arrangement could be completed by the end of June.
This will “ensure better credibility for Serbia and lower interest rates”, Minister of Finance and Economy Mladjan Dinkić announced on Monday.
Addressing reporters in the Serbian parliament, Dinkić said that the idea is not to seek funds from the IMF because Serbia does not need funds for the budget or foreign exchange funding, but the IMF itself is necessary so as to additionally improve the country’s credibility and lower interest rates.
“We also need the IMF because their advice can help us reach certain mid-term structural reforms easier,” Dinkić stated.
“We will discuss mid-term measures with the IMF,” Dinkić specified and added that Serbia aims to stop the growth of the public debt this year and reduce it in the next year.
“We can make room for early payback of certain expensive loans from the past with the interest rate at around seven percent because the government can issue Eurobonds with the interest rate of 4.7 percent,” Dinkić said.
He noted that Serbia can perhaps withdraw more money than it needs for the year so as to pay back the debts from the past before the deadline and thus ensure budget solvency.
Source B92
