Serbian Minister of Finance Sinisa Mali spoke today in Belgrade with a delegation of the International Monetary Fund (IMF), led by Jan Kes Martine, on the implementation of reform goals under the Policy Coordination Instrument.
The IMF delegation will be in Serbia until Friday 28th of February.
The current arrangement was approved on July 18, 2018, for a period of 30 months, that is, until January 2021, and is a non-financial arrangement, which has an advisory role and is primarily focused on implementing structural reforms.
According to the ministry, the interlocutors agreed today that 2019 was very successful in economic terms, given that the economic growth, according to the Republic Bureau of Statistics, was 4.2 percent, that public debt was under control and below 50 percent, that the state budget is in surplus for the fourth consecutive year, and that Serbia has had a record inflow of foreign direct investment of 3.8 billion euros, the Ministry of Finance said.
Mali pointed out that it is good that economic growth is diversified and that the construction industry dominates, as well as that economic growth in the last quarter of last year was as high as 6.1 percent.
He recalled that, in 2019, the Fiscal Risk Sector was established within the Ministry of Finance, which was one of the goals within the program, and the methodology for managing capital projects was established, as well as the Capital Investment Commission at the level of the Government of Serbia.
One of the topics discussed was the investment program “Serbia 2025”, which, according to Mali, is important for raising the quality of life of citizens, and for its realization the development of the capital market is essential.
In this regard, the Minister highlighted two successful issues of Eurobonds in the international market last year, as well as the successful issuance of a 20-year euro bond and a 12-year dinar bond in the domestic market.
He added that JP Morgan financial group recently included Serbia on the list for potential inclusion in its index, and a few days ago a Memorandum of Understanding was signed with Euroclear, and the minister expects Serbia to enter that system by the end of the year as it would become even more attractive to foreign investors.
Jan Kes Martine said economic growth in Serbia was higher than expected and projected by the IMF last year, and he hopes it will continue in 2020.
At the meeting, when it comes to employment in the public sector, it was said to be under discussion with the World Bank, which provides support to the Government and relevant ministries.
It was said that the data on public sector wage reform were being updated so that the models used to reconcile and define wage ratios were more accurate. A new proposal is expected in May.
Formation of a working group for capital market development, announcement of a second tender for a large portfolio of troubled bank loans in bankruptcy, introduction of a pension indexation formula, publication of a list of all state-owned enterprises, amendments to the Law on Fees, the Law on Inspection, the Law on deposit insurance and the Agency Employment Act.
They also discussed the sale of state-owned shares in Commercial Bank, which is one of the reform goals, and it is coming to an end, since a strategic partner for that bank has been found.
Other reform objectives of the program that have been fulfilled are: separation of core and secondary activities in the Tax Administration, reduction of the number of branches within that administration from 178 to 37, introduction of measures to accelerate VAT refunds, sale of state shares in Jubmes Bank, and implementation of FATF measures to prevent money laundering, Danas reports.
