Tabakovic announces transition to precautionary arrangement with IMF

BELGRADE - National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said on Wednesday Serbia had no plans to draw a second tranche of funds approved by the IMF as it did not need them, and announced a transition from a financial standby arrangement with the IMF to a precautionary one.

"Serbia has no plans to draw a second tranche of funds that have been approved to it and are available to it because it does not need them, and we do not want the country to pay interest on that," Tabakovic said at the presentation of the November 2023 Inflation Report, in response to questions from reporters.

She said the IMF Board of Executive Directors would in December decide whether the most recent review of the current arrangement had been successful.

"Our decision has already been made - going forward, the arrangement will be a precautionary one, barring any worsening of geopolitical circumstances, which can change overnight, as you know," Tabakovic said.

Last December, the IMF Board approved to Serbia a standby arrangement worth 290 pct of the country's quota in the IMF, which is equivalent to around 1.89 bln SDR, or around 2.4 bln euros.