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Finance Minister meets with IMF representatives in Istanbul

Belgrade/Istanbul, 7 October 2009

Serbian Minister of Finance Diana Dragutinovic met today in Istanbul with International Monetary Fund (IMF) Director for Europe Marek Belka and IMF Deputy Director in the European Department Poul Thomsen.

File photo of Diana Dragutinovic

Author: Tanjug

Presenting the economic picture of Serbia, Dragutinovic confirmed that the projected deficit of 4.5% of GDP in 2009 will be achieved. She said that that will not be an easy task, but it can be done, and thanked them for the flexibility which the IMF has shown in this time of crisis. She voiced her hope that a strategic agreement will be made during their forthcoming visit to Belgrade.

She explained that in light of current economic activity and a considerably lower foreign trade exchange, achieving a fiscal deficit of 4% of GDP in 2010 is a difficult task, but it will enable the state to continue supporting the economy and secure stability.

IMF Director for Europe Marek Belka said that Serbia has to meet the great challenge of making thorough revisions of public finances, the tax base and legal rights.

Belka said that Serbia is able to carry out refoms because it has strong potential. However, reforms cannot be made overnight or within several months, because those processes takes years, he underlined.

IMF Deputy Director in the European Department Poul Thomsen said that the IMF mission is open to talks and hearing arguments. He explained that the quality of the measures taken and possibilities of financing the deficit are more important than the deficit amount. The IMF does not consider as credible the measures of making small savings here and there or applying the same amount of reductions everywhere. What is credible are systematic changes that will enable the sustainability of public financing.

Minister Dragutinovic said that Serbia’s arrangement with the IMF is of great importance, as well as the statement by IMF representatives that the EU considers Serbia’s accession as a great challenge, it is added in the statement by the Ministry of Finance.