IMF Executive Board approves to Serbia a new advisory cooperation programme – another confirmation of credible economic policy

At its meeting held on 18 June 2021, the IMF Executive Board approved to the Republic of Serbia a new cooperation programme supported by the Policy Coordination Instrument (PCI). As the previous one, the new programme is of advisory nature and does not involve the use of financial resources.  

“The new programme builds on the previous one, which successfully ended in January this year, and represents the continuation of cooperation between Serbia and the IMF through a partnership relationship. It is also a confirmation that Serbia pursues a successful and credible economic policy, also recognised by one of the most important international financial institutions”, stated Governor Jorgovanka Tabaković.

The advisory programme is aimed at supporting Serbia’s faster economic recovery from the effects of the pandemic, preservation of macroeconomic and financial stability, and implementation of an ambitious plan of structural reforms, in order to encourage high, inclusive and sustainable growth in the medium run.

The priority reforms contained in the programme reflect the policy and agenda of economic policy creators in Serbia. This involves the buttressing of the fiscal policy framework, strengthening governance of state-owned enterprises, development of the capital market, further advancement of the dinarisation process, improved provision of social assistance and a transition to the green economy.

 “Going forward, our priorities remain the same – stability and sustainable and accelerated economic growth, along with a further rise in citizens’ living standards”, underscored the Governor.
The arrangement was approved for a 30-month period, and the implementation of the agreed economic programme will be monitored and assessed through five semi-annual reviews. Successful completion of each review will be a signal of Serbia’s commitment to the continuity of implementation of robust macroeconomic policies and structural reforms.

The PCI is of advisory nature and is available to all IMF members that do not need Fund financial resources at the time of approval. It is designed for countries seeking to demonstrate commitment to a reform agenda and is arranged in order to secure support to an economic programme, provided the country has no current or potential balance of payments difficulties.

Governor's Office