Imf starts quarterly check of serbia under precautionary loan

The International Monetary Fund began its first quarterly monitoring mission of Serbia under the terms of its $1.5 billion precautionary loan, the central bank said.

The Washington-based lender will look at economic developments and the growth outlook for this year and next, monetary policy and “structural measures” aimed at strengthening fiscal responsibility, the Belgrade-based Narodna Banka Srbije said in an e-mail today.

“Special attention will be focused on defining the budget framework for 2012, in line with fiscal rules, as well as on economic-policy measures to alleviate external risks and the potential spillover effects of the global crisis on Serbia,” the bank said in the statement.

The quarterly assessments will be conducted throughout the duration of the 18-month loan. The government has said repeatedly it has no intention of drawing the funds from the credit except in case of a balance of payment crisis.