Talks with IMF possible in fall, govt. against pay freeze

BELGRADE -- PM Ivica Dačić Serbia could potentially announce new talks with the IMF on a new arrangement with the international financial institution in the fall.

(Tanjug)

He underscored that the IMF mission currently staying in Serbia "came to get a close insight into Serbia's economic situation."

"This is not a visit aimed at talks, and nothing is expected except for the IMF to get an insight into the economic situation in the country and then recommend measures which should be realised," Dačić told reporters after the conclusion of the meeting of the third Reality Check conference in Belgrade, and added that key talks would be conducted in autumn, in a few months.

Dačić noted that it is important for Serbia to close an arrangement with the IMF because the organisation is important for the country's credibility and macroeconomic stability and not because Serbia needs money.

It is crucial for the IMF as well to see whether Serbia will get the date of EU accession talks, Dačić said and added that everyone is waiting for the decision of the EU Council after which the IMF and the government would discuss further steps. He noted that he does not expect any agreements or conclusions as the focus of the talks will lay on opinion exchange.

The third Reality Check conference covered issues essential for further development and enhancement of the business climate in Serbia.

President of the Foreign Investors Council in Serbia Kostin Bork took part in the gathering to day that a new arrangement between Serbia and the International Monetary Fund (IMF) would be important for the predictability and economic stability.

The same applies to reforms and a stable economic situation in general, he told reporters after the third Reality Check conference.

Bork believes that the arrangement with the IMF would be important for the realisation of the Russian loan for the modernization of Serbian Railways infrastructure.

No freezing of pensions and salaries

Ivica Dačić on Monday met with a delegation of the International Monetary Fund (IMF) and told them that the Serbian government was against lowering or freezing salaries and pensions.

He informed the IMF delegation about the government's efforts aimed at economic recovery and ensuring macroeconomic stability of the country, noting it is trying to increase export and reduce the public debt.

"We do not want to shift the burden of the crisis onto the poorest segments of society, which is why we are against lowering and freezing salaries and pensions," Dačić said in the meeting, according to a release.

The IMF delegation started talks with Serbian officials about the current financial and economic situation, and economic and fiscal policy measures, last week.