IMF To Endorse $520 Mln Standby Deal with Serbia on Dec 19

Serbia's representative in the World Bank Biljana Hroneos-Krasavac has told the Voice of America that the endorsement of the funding arrangement will be a matter of routine, as the Balkan country has ample foreign exchange reserves and access to credits from abroad, the government said in a statement.

Serbia signed the 15-month precautionary standby deal with the IMF last month with the two sides agreeing on a 2009 budget gap equivalent to 1.5% of the country’s projected gross domestic product. The funds that will be made available to Serbia under the deal are equivalent to 75% of the country's total quota with the IMF. The Serbian authorities will tap the IMF funds only if necessary.

Serbia's Prime Minister Mirko Cvetkovic told a news conference on Wednesday that the government plans to approve the 2009 budget in line with the arrangement with the IMF and in time for the IMF endorsement on December 19.

"I am convinced that our endorsement of the 2009 budget will not be a barrier to the IMF's endorsement of the agreement," Cvetkovic said.

The approval of the government's budget has been delayed due to pending decisions for overcoming the global economic crisis, Cvetkovc said but declined to elaborate on those decisions until they are made final.

Serbia wrapped up a three-year standby arrangement with the IMF in February 2006.

($=0.7914 euro)