BELGRADE: Serbia reiterated on Thursday that it is ready to start talks with the IMF on a new precautionary loan deal in the first few months of next year.
"A precautionary deal with the IMF will help Serbia to implement planned reforms and will send a signal to foreign investors that Serbia is safe, stable and attractive market," the finance ministry said in a statement.
Last year the IMF froze a 1 billion euro ($1.38 billion)loan deal with European Union candidate Serbia due to overspending and lack of reforms. Finance Minister Lazar Krstic told Reuters earlier this year that he expected to start talks with the IMF on a new arrangement in the first quarter of 2014.
Serbia's Socialist-led government pledged a long-delayed reform of the public sector and pension system to rein in rising debt and the budget deficit. The IMF was not immediately available for comment.
The government plans to shut down or sell 179 loss-making state companies, reform its pension system and pass a series of laws including a labour law to attract investors and secure growth.
Serbia's parliament passed the 2014 budget last week, which cuts public sector wages and sets a budget deficit target of 4.6 percent of gross domestic product compared to an estimated 4.7 percent this year.
But the consolidated deficit, which includes funds to repay loans of state-owned companies and banks, is seen at 7.1 percent of GDP in 2014.
indiatimes.com
"A precautionary deal with the IMF will help Serbia to implement planned reforms and will send a signal to foreign investors that Serbia is safe, stable and attractive market," the finance ministry said in a statement.
Last year the IMF froze a 1 billion euro ($1.38 billion)loan deal with European Union candidate Serbia due to overspending and lack of reforms. Finance Minister Lazar Krstic told Reuters earlier this year that he expected to start talks with the IMF on a new arrangement in the first quarter of 2014.
Serbia's Socialist-led government pledged a long-delayed reform of the public sector and pension system to rein in rising debt and the budget deficit. The IMF was not immediately available for comment.
The government plans to shut down or sell 179 loss-making state companies, reform its pension system and pass a series of laws including a labour law to attract investors and secure growth.
Serbia's parliament passed the 2014 budget last week, which cuts public sector wages and sets a budget deficit target of 4.6 percent of gross domestic product compared to an estimated 4.7 percent this year.
But the consolidated deficit, which includes funds to repay loans of state-owned companies and banks, is seen at 7.1 percent of GDP in 2014.
indiatimes.com
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