The new decision of the IMF is a confirmation of Serbia’s credible economic policy

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Today’s decision of the Board of Executive Directors of the International Monetary Fund (IMF) to approve a new program of cooperation of an advisory nature to Serbia is another confirmation of Serbia’s credible economic policy, the National Bank of Serbia (NBS) assessed tonight.

The IMF has approved a new cooperation program for Serbia with the support of the Policy Coordination Instrument (PCI), which, like the previous one, is of an advisory nature and does not envisage the use of financial resources.

“The new program builds on the previous one, which was successfully completed in January this year, and represents a continuation of cooperation through the partnership that Serbia has with the International Monetary Fund. The program is also a confirmation that Serbia is pursuing a successful and credible economic policy, which is recognized by one of the most important international financial institutions,” said Governor Jorgovanka Tabakovic.

According to the NBS statement, the goal of the advisory program is to support Serbia’s faster economic recovery from the effects of the pandemic, preserve macroeconomic and financial stability and implement an ambitious structural reform plan to encourage high, inclusive and sustainable growth in the medium term.

These include strengthening the fiscal policy framework, strengthening the management of state-owned enterprises, developing capital markets, further strengthening the dinarisation process, improving the provision of social assistance, as well as the transition to a green economy.

“In the next period, our priorities remain the same – stability and sustainable and accelerated economic growth, with further growth of the living standard of citizens,” said NBS Governor Jorgovanka Tabakovic.

The arrangement has been approved for a period of 30 months, and the progress of the agreed economic program will be monitored through five semi-annual reviews of the results, which will evaluate its implementation.

The Policy Coordination Instrument is an IMF support mechanism to member countries, is advisory in nature and does not provide for the use of financial resources. It is intended for countries committed to reforms, and it is agreed in order to support the appropriate economic program, when the country has no current or potential balance of payments problems, the NBS statement reminds, Nova reports.