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IMF brings positive decision on three-year agreement with SCG
Belgrade/Washington,
7 February 2006
The Board of Directors of the International Monetary Fund (IMF) last night brought a positive decision on concluding its three-year arrangement with Serbia-Montenegro which is worth $937 million, allowing a debt of $700 million to be written off.
Serbian Minister of Finance Mladjan Dinkic confirmed in a statement to the news agency Tanjug that he had received news of the write-off from IMF headquarters in Washington, and added that this is a big day for the Serbian economy.
Dinkic said that the successfully concluded arrangement with the IMF will allow a write-off of the $700 million debt to the Paris Club of Creditors, and with that an entire phase of cooperation with the IMF has come successfully to an end which is envisaged for post-conflict situations and countries in transition.
Dinkic said that the Serbian government will soon begin talks with the IMF on a new arrangement.
Serbian Deputy Prime Minister Miroljub Labus said in a statement to the news agency Tanjug that with the conclusion of the three-year arrangement with the IMF the external debt problem of Serbia has been resolved, as well as the one concerning the write-off of the debt to the Paris Club of Creditors.
Labus said that this is a big success, because before democratic changes many believed the problem of external debt was insolvable, and added that Serbia has finally become a normal country in the financial sense, that has problems, but also has a credit rating which it had never had before.
“Persistence has paid off, because it took us three and a half years to complete this work. There were difficulties in the country as well as abroad, but despite all the obstacles and lack of understanding, I am proud of what we have accomplished,” said Labus.
Serbian Minister of International Economic Relations Milan Parivodic said that the decision of the Board of Directors of the IMF has multiplied importance because above all it has confirmed that Serbia-Montenegro has implemented essential reforms in accordance with the programme of that arrangement.
According to Parivodic, this also means that world financial experts have completely acknowledged these efforts and undoubtedly their position will significantly contribute to raising the domestic credit rating.
Parivodic said that the decision by the IMF Board of Directors reflects a growing confidence in the investment potential of Serbia, and added that this will surely give an incentive to new investors.
He recalled that apart from the additional write-off of the $700 million debt to the Paris Club of Creditors, it is also expected that an amount of $200 million in the form of “special drawing rights” in the IMF be secured, which can be used for further debt making.
Dinkic said that the successfully concluded arrangement with the IMF will allow a write-off of the $700 million debt to the Paris Club of Creditors, and with that an entire phase of cooperation with the IMF has come successfully to an end which is envisaged for post-conflict situations and countries in transition.
Dinkic said that the Serbian government will soon begin talks with the IMF on a new arrangement.
Serbian Deputy Prime Minister Miroljub Labus said in a statement to the news agency Tanjug that with the conclusion of the three-year arrangement with the IMF the external debt problem of Serbia has been resolved, as well as the one concerning the write-off of the debt to the Paris Club of Creditors.
Labus said that this is a big success, because before democratic changes many believed the problem of external debt was insolvable, and added that Serbia has finally become a normal country in the financial sense, that has problems, but also has a credit rating which it had never had before.
“Persistence has paid off, because it took us three and a half years to complete this work. There were difficulties in the country as well as abroad, but despite all the obstacles and lack of understanding, I am proud of what we have accomplished,” said Labus.
Serbian Minister of International Economic Relations Milan Parivodic said that the decision of the Board of Directors of the IMF has multiplied importance because above all it has confirmed that Serbia-Montenegro has implemented essential reforms in accordance with the programme of that arrangement.
According to Parivodic, this also means that world financial experts have completely acknowledged these efforts and undoubtedly their position will significantly contribute to raising the domestic credit rating.
Parivodic said that the decision by the IMF Board of Directors reflects a growing confidence in the investment potential of Serbia, and added that this will surely give an incentive to new investors.
He recalled that apart from the additional write-off of the $700 million debt to the Paris Club of Creditors, it is also expected that an amount of $200 million in the form of “special drawing rights” in the IMF be secured, which can be used for further debt making.
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