The Pak Banker

IMF approves 30-month policy coordinati­on for Serbia

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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."

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