IMF and Serbia Forge New Economic Reform Deal

The International Monetary Fund has agreed to a 36-month deal with Serbia to support economic reforms. This Policy Coordination Instrument aids without direct financial input. Serbia seeks to enhance growth and secure other loans while mitigating risks from foreign demand and commodity prices.

The International Monetary Fund has formally announced a new 36-month agreement with Serbia aimed at supporting the country's economic reform initiatives. This significant move is designed to leverage additional lending opportunities from beyond the IMF's direct financial resources.

The central mechanism of this arrangement, known as the Policy Coordination Instrument, will proceed pending the IMF executive board's approval. This follows the recent conclusion of Serbia's two-year 2.4 billion euro standby agreement with the IMF.

Serbia's projected growth is expected to rise to approximately 4.25% under this program, amid a stable financial sector. However, risks remain from foreign demand fluctuations and commodity price changes. The IMF notes that Serbia possesses strong safeguards through robust foreign exchange reserves and public debt management.

(With inputs from agencies.)