IMF: Agreement on fourth review and new arrangement reached with Serbia

BELGRADE - The International Monetary Fund (IMF) has reached staff-level agreement with the Serbian authorities on the fourth and final review under the Stand-By Arrangement (SBA) and on a successor 36-month Policy Coordination Instrument (PCI) request, the IMF announced in a statement on Wednesday.

"The PCI is a non-financing instrument designed to support strong economic policies. The agreement is subject to approval by the IMF Executive Board and is expected to be considered by the Board in December 2024," it said.

"Macroeconomic outcomes in Serbia remain strong. Growth

and the labor market are robust, and inflation has fallen. Foreign exchange reserves are at a record high, and the public debt burden continues to decline.

Under the PCI, Serbia commits to fiscal deficits not exceeding 3.0 pct of GDP over 2025-27, to further prioritise spending in case of fiscal shocks, and to keep public wage and pension increases aligned with its fiscal rules.

The PCI will balance Serbia’s public investment and social expenditure needs with continued fiscal discipline to support sustainable growth while keeping public debt on a downward path," it also said.