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The Government of the Republic of Serbia

In the service of citizens

IMF satisfied with economic state of play in Serbia

Belgrade, 3 October 2024

A delegation from the Ministry of Finance, led by First Deputy Prime Minister and Minister of Finance Siniša Mali, met today with the International Monetary Fund’s (IMF) mission, headed by Donal McGettigan.

The IMF mission, which began its visit to Serbia today, will remain in the country until 15 October for the fourth and last review under the ongoing stand-by arrangement between the country and the fund.

The First Deputy Prime Minister said that he is satisfied with the implementation of the stand-by arrangement, under which multiple reform goals have been met.

An action plan has been adopted to ensure medium-term budget planning is more efficient and obligatory and the ISKRA central electronic register of salaries and employment has been expanded to cover the education sector, Mali said. Also, a new Law on the Management of Companies Owned by the Republic of Serbia has been adopted to improve these enterprises’ efficiency and introduce corporate governance, he added.

The First Deputy Prime Minister further noted that the focus of the ongoing stand-by arrangement has been on the energy sector, where the following steps have been taken: the government has adopted an energy sector investment plan; the legal status of power utility Eletroprivreda Srbije (EPS) has been changed to a joint-stock company; an EPS restructuring plan has been passed; EPS has adopted a new system/methodology for setting prices charged to the non-regulated segment (commercial supply for companies and businesses); and a new gas price calculation methodology has been passed.

Mali pointed out that Serbia’s economy continues to grow despite the crisis, emerging as the second-fastest growing economy in Europe in the first half of the year.

The state budget for 2025 will be based on capital investments and fiscal responsibility, Mali stressed.

McGettigan welcomed the economic situation in the Republic of Serbia, especially emphasising the good situation on the labour market and low unemployment, that is, record high employment and high wages, as well as the public debt that is under control.

The head of the IMF mission also noted the importance of fiscal responsibility and compliance with fiscal rules.