May 18 (SeeNews) - The International Monetary Fund (IMF) said on Friday it reached an agreement with the Serbian government on key policy elements of the new programme for the country.
An agreement was reached with the Serbian government on policy objectives, including to foster higher, sustainable growth, maintain fiscal discipline and financial stability, and advance the authorities’ ambitious structural reforms agenda to further improve the living standards of the Serbian people, the IMF said in a concluding statement of a mission that visited the country in May 7-18.
“During the mission, we continued the very productive discussions with the authorities on their economic reform program, to be supported by the IMF with a Policy Coordination Instrument," the leader of the IMF mission, James Roaf, said in the statement.
Following the successful completion of the 2015-18 programme, the Serbian economy continues to expand at a healthy pace. Growth is expected to reach at least 3.5% in 2018, driven by consumption, investment and exports. Supported by the appropriate monetary policy of the central bank, inflation remains low, and is expected to reach about 2% at the end of 2018, the IMF said.
Budget results for the first quarter of 2018 point to another year of fiscal surplus, the Fund added.
"We are grateful for the authorities’ hospitality and cooperation. On this occasion, I would like to thank former Finance Minister Dusan Vujovic for the excellent collaboration during the successful implementation of Serbia’s 2015-18 adjustment and reform programme,” Roaf said.
Serbia's parliament accepted the resignation of Vujovic on Thursday. The government said on Thursday that prime minister Ana Brnabic will assume his functions until a new finance minister is appointed.
"We have reached agreement on key policy elements of the new programme, and intend to return shortly to finalise the discussions once the new Finance Minister has taken office," Roaf noted.
A new arrangement with the IMF will most likely be signed but it will not be financial, as the country does not need financial support even for precaution reasons, Brnabic said in February.