The Serbian government has reached an agreement with delegation of the International Monetary Fund (IMF) on the new arrangement that will last for 30 months, and it would not be financial but advisory (Policy Coordination Instrument PCI), the IMF has announced today.
PCI is the new instrument that the IMF has introduced during 2017, for the purpose of providing support to countries such as Serbia, for which framework stipulated by the IMF program would be useful, but which do not need financial support by this financial institution.
“Goal of the program supported by PCI is to maintain macroeconomic and financial stability and achieve progress in realization of an ambitious plan of structural and institutional reforms, in order to abet faster and inclusive growth, new jobs and higher standard of living,” Roaf has explained.
He has evaluated that Serbia’s macroeconomic odds are still good, with growth reaching 4.6 percent y.o.y. in the first quarter and expectations of at least 3.5 percent at annual level this year. Furthermore, inflation is still low and it is estimated that it will be around two percent by the end of 2018, thanks to support by an appropriate monetary policy of the National Bank of Serbia.