[ad_1]
The Executive Board of the International Monetary Fund at a session in Washington approved a new program of cooperation with the political coordination policy support, popularly called "Guardian", learns "Blic Business."
The arrangement is approved for a period of 30 months and is of an advisory nature. It does not anticipate the use of financial resources either.
The program represents a continuation of the reserve precautionary arrangement that Serbia successfully completed in February 2018. The aim of the program is to maintain macroeconomic and financial stability and to pursue structural and institutional reforms for encourage faster and more complete growth, creating jobs and improving the standard of living.
As announced by the National Bank of Serbia over a period of 30 months, the arrangement, the advancement of the agreed economic program will be followed by five half-yearly reviews of the results that will be evaluated for its implementation.
The New Support Mechanism
The Political Coordination Tool is a new mechanism to support the International Monetary Fund to member states, is advisory and does not provide for the use financial resources. It is intended for countries dedicated to reforms and negotiated to obtain support for an appropriate economic program, when the country has no current or potential balance of payments problems.
At a meeting of the Executive Board of the International Monetary Fund, Serbia managed to resolve macroeconomic imbalances. By implementing an economic program backed by a three-year precautionary agreement, fiscal sustainability has been achieved, public debt reductions and accelerated reduction have been established, and the country's external position has been strengthened. . Monetary policy has managed to keep inflation under tight control, while supporting economic recovery and maintaining the relative stability of the exchange rate. The confidence created by the improvement in the macroeconomic situation is reflected in the increase in investments, both from foreign and domestic sources, and allows an economic recovery.
IMF: Economic Outlook of Serbia Positive
The country's outlook remains positive. However, Serbia remains vulnerable to the impact of regional and global developments and instability on the international market. Delays in the implementation of structural reforms or worrying fiscal discipline could undermine confidence and reduce medium-term growth prospects.
The agreed program, supported by the Political Coordination Instrument, provides for a fiscal policy aimed at further reducing public debt. the goal of solving the infrastructure needs of Serbia, as well as some reduction in the tax burden on the economy and labor.
The monetary policy of the National Bank of Serbia was found to be adequate under conditions of uncertainty in domestic and foreign markets.
In the financial sector, it has been estimated that good results have been achieved in reducing the level of problem loans and that other activities should be continued in their further reduction. Priorities are also the harmonization of regulatory and supervisory frameworks with European standards and the resolution of problems of prevention of money laundering and terrorist financing
Structural and institutional reforms aim at improving the quality of money laundering. business environment. These reforms will focus on the restructuring of state-owned enterprises, financial institutions and public administrations, as well as on the further reduction of the shadow economy.
<! –
Notification paragraph trigger test
->
[ad_2]
Source link
