IMF approves 30-month policy coordination for Serbia
The Executive Board of the International Monetary Fund (IMF) approved a new 30-month Policy Coordination Instrument (PCI) for the Republic of Serbia.
The new program builds on the 2018 PCI successfully completed in January 2021 and aims to support the recovery from the pandemic, maintain macroeconomic stability, and anchor the mediumterm fiscal policy framework, while pushing ahead with structural reforms to help deliver more inclusive and sustainable growth.
Reform priorities under the new PCI reflect the authorities' policy and reform agenda. They include anchoring the fiscal policy framework, strengthening the governance of state-owned enterprises, developing capital markets and increasing dinarization, improving the provision of social assistance, as well as the transition to a green economy.
Program reviews will take place on a semiannual schedule.
While the PCI involves no use of IMF financial resources, successful completion of program reviews will help signal Serbia's commitment to continued strong macroeconomic policies and structural reforms.
The PCI is available to all IMF members that do not need Fund financial resources at the time of approval. It is designed for countries seeking to demonstrate commitment to a reform agenda or to unlock and coordinate financing from other official creditors or private investors.
Meanwhile, IMF team led by Mr. Jaroslaw Wieczorek, Mission Chief for Togo, held virtual meetings with the Togolese authorities from June 1-18, 2021 to discuss recent economic developments.
At the end of the visit, Mr. Wieczorek said, "IMF staff discussions with the authorities were focused on measures to support the ongoing response to COVID-19, efforts to strengthen the nascent economic recovery, the need for reforms that can be leveraged to foster inclusive and sustainable private sector-led growth, and improve development outcomes over the medium term.
It is in this regard that the Togolese authorities have expressed their interest in support under the Extended Credit Facility (ECF).
"During the discussions, good progress was made on key assumptions underpinning the macroeconomic framework with the aim of ensuring resources for planned vaccinations and other COVID-19 related needs as well as continued mediumterm macroeconomic stability with fiscal space for social and development spending.
"The Togolese authorities confirmed their commitment to reforms based on the 2020-25 Roadmap and the National Development Plan.
"Discussions are expected to continue in the near future with a view to finalizing the understandings on a new ECF arrangement. "IMF staff team express their gratitude to the Togolese authorities for the open and productive discussions."