The Board of Directors of the International Monetary Fund (IMF) has confirmed a new non-financial arrangement for Serbia, in the form of the Policy Coordination Instrument (PCI) for the next three years. This decision, announced by Serbia’s Ministry of Finance, represents a continuation of the reforms backed by the IMF since the beginning of Serbia’s economic transformation process.
Finance Minister Siniša Mali highlighted that the new arrangement will ensure that Serbia remains committed to fiscal discipline, with a target to keep the fiscal deficit next year below three percent of GDP. This will allow the government to maintain significant capital investments while preserving the stability of public finances.
“The new arrangement is non-financial, meaning Serbia will not need to draw additional funds. It focuses on maintaining fiscal stability through structural reforms,” Mali explained. “The agreement includes measures such as a comprehensive analysis of the pension system, an update of the energy investment plan, a review of capital projects, and an evaluation of the salary and employment structure in state institutions listed in the Iskra register.”
The IMF delegation, led by Donald McGettigan, recently completed the fourth and final review of Serbia’s stand-by arrangement, which is set to expire this month. The new Policy Coordination Instrument (PCI) will guide Serbia’s economic reforms over the next three years.
Minister Mali emphasized the importance of the IMF’s support and its role in boosting Serbia’s credibility in the global financial market. “Serbia is a country with an investment-grade rating, and the reforms we have implemented so far have brought excellent results,” said Mali. “These processes are never easy, but they are vital for achieving our long-term goals for Serbia.”
During their visit to Serbia, the IMF Mission representatives commended the country’s economic growth, the ongoing decrease in inflation, and the management of public debt, noting that Serbia is on the right track to ensure continued progress.
