IMF Approves a 36-Month Policy Coordination Instrument with Serbia

IMF (Shutterstock)

The Executive Board of the International Monetary Fund (IMF) in Washington approved a 36-month Policy Coordination Instrument (PCI) with Serbia.

Serbian Finance Minister Sinisa Mali has said that this represents a guarantee for continued reforms in Serbia with the support of the international institution, which has been engaged in the process since the very beginning.

“Under this new arrangement, Serbia is obliged to keep a fiscal deficit of no more than 3.0 percent of GDP in 2025, which will give us the room to pursue major capital investments while maintaining absolute stability of public finance,” Mali said.

He also said that the new arrangement was a non-financing instrument, meaning that Serbia would not necessarily have to withdraw additional funds, adding that it envisaged establishing and publishing a comprehensive pension system analysis with full adherence to fiscal rules, a review of capital projects, an update of energy investment plan, and an analysis of public sector wage structure and staff listed in the central electronic public wage and employment registry Iskra.

An IMF delegation, led by Donal McGettigan, concluded the fourth review under the Stand-By Arrangement in mid-October, ahead of its expiration on December 18, 2024, to facilitate the transition to the PCI.