IMF demands Serbia reduce public administration, privatize companies...

Prime Minister of the Republic of Serbia Aleksandar Vučić met today with a delegation of the International Monetary Fund (IMF) on the occasion of the fourth and fifth reviews of the precautionary arrangement, which the Government signed with this international financial institution. Vučić stated in his opening remarks that this is a turning point for the recovery of the domestic economy, and expressed gratitude to the IMF and the World Bank for their great assistance and desire for Serbia to be a macroeconomically stable country on the path to development and prosperity, reports the BH News Agency Patria.

He emphasized that good results are partly conditioned by great sacrifice, but also that they will not last if the Government is not fully committed to the further implementation of the program.

Head of the IMF delegation, James Roaf, assessed that the arrangement is being successfully implemented and that Serbia is achieving exceptional results compared to the set goals, and particularly emphasized the strengthening of private sector investments, which contributed to positive trends and recovery on the fiscal side of the program.

The topic of the meeting was the initiated structural reforms, which will be discussed during the IMF delegation's stay in Belgrade. Among the most important are the rationalization of public sector employees, the restructuring of large state-owned enterprises, such as EPS, Srbijagas, and Železnice Srbije, and the completion of the privatization process of the largest state-owned companies, including RTB Bor, Resavica, Petrohemija, and others.

In this context, Roaf emphasized that the IMF's desire, despite difficult discussions about state-owned enterprises - primarily EPS, Srbijagas, and Železnice, as well as the privatization issue - is for Serbia to successfully continue on the path it has already taken, with the idea that the result will be good for all participants.

He pointed out the importance of infrastructure projects and the adoption of the law on financing local self-government, especially from the perspective of preparing the budget for the next year, but also the reform of healthcare and education, and the Tax Administration throughout Serbia.

Vučić emphasized that Serbia has great results ahead, but also high goals, and added that he is proud of the results in the fiscal deficit, as well as the excellent revenues from VAT collection.