NBS: IMF Approves Stand-By Arrangement to Serbia

At a meeting held on December 19, 2022, the IMF Executive Board approved to the Republic of Serbia a 24-month Stand-By Arrangement (SBA) worth 290% of Serbia’s quota at the IMF, the National Bank of Serbia (NBS) announced.

As said, the arrangement has been approved in support of the agreed economic program, with a focus on the energy sector.

The Board also positively assessed the results achieved under the third review of Serbia’s economic program supported by the Policy Coordination Instrument (PCI), the NBS says on its website.

The objectives of Serbia’s SBA-supported economic program for 2023–2024 include the preservation of macroeconomic and financial stability, the strengthening of the economy’s resilience to the energy crisis by implementing an adequate energy policy, reform in the domestic energy sector, whilst protecting the most vulnerable, and the encouraging of high, ecological, inclusive and sustainable medium-term growth.

– In making the decision to approve the SBA, the IMF Executive Directors stated the Serbian economy has solid buffers to withstand risks, including adequate FX reserves, moderate external and public debt levels, a well-capitalized and liquid banking sector. The monetary policy response amid current inflationary pressures is assessed as adequate, with the ongoing monetary tightening being crucial to ensure that inflation does not become entrenched. The SBA will provide an additional buffer to tackle the current challenges and uncertainties at the global level – it is said on the official website of the NBS.

Narodna banka Srbije Beograd

Međunarodni monetarni fond-MMF Beograd

National Bank of Serbia

NBS

International Monetary Fund

IMF

IMF stand by arrangement

economic program of Serbia 2023 2024

reform of energy sector

FX reserves

external debt level

public debt level