Official talks between representatives of Serbia and the IMF mission began with a plenary meeting at the National Bank of Serbia (NBS), the NBS told.

Besides NBS Governor Dejan Soskic, who represents Serbia at the IMF, the participants in the meeting include Deputy Prime Ministers Mladjan Dinkic, Jovan Krkobabic and Bozidar Djelic, Finance Minister Diana Dragutinovic and NBS Council of Governors President Bosko Zivkovic.

According to the government's press office, Prime Minister Mirko Cvetkovic and Minister Dragutinovic had separate talks with IMF representative Albert Jaeger on the stand-by arrangement with the financial institution later in the day.

The talks between representatives of Serbia and the IMF will focus on the latest fiscal, monetary and macroeconomic developments, with special emphasis on the draft law on fiscal responsibility, which should be introduced into parliamentary procedure by mid-September, the NBS announced.

The IMF mission to Serbia, headed by Albert Jaeger, will be in Belgrade from August 19 to 31, as part of the fifth review under the IMF stand-by arrangement with Serbia. At the end of last week, the mission had preparatory, technical talks with Serbian representatives.

On May 15, 2009, the IMF approved to Serbia a stand-by arrangement worth approximately EUR three billion, which expires in April 2011.

Head of the International Monetary Fund (IMF) mission to Serbia Albert Jaeger said Monday during talks with Serbian Prime Minister Mirko Cvetkovic and Finance Minister Diana Dragutinovic that Serbia has followed a good and responsible fiscal policy.

During their separate meetings, Cvetkovic, Dragutinovic and Jaeger all pointed to the need for passing a law on fiscal responsibility as soon as possible.

The IMF mission will be in Belgrade from August 19 to 31, as part of the fifth review of the IMF stand-by arrangement with Serbia.

In the next few days, it will analyze the current economic situation in Serbia with special emphasis on budget revenue and spendings.

Official talks between representatives of Serbia and the mission began on Monday with a plenary meeting at the National Bank of Serbia (NBS), the NBS told Tanjug.

Besides NBS Governor Dejan Soskic, who represents Serbia, at the IMF, the participants in the meeting include Deputy Prime Ministers Mladjan Dinkic, Jovan Krkobabic and Bozidar Djelic, Finance Minister Diana Dragutinovic and NBS Council of Governors President Bosko Zivkovic, the government's press office said.

The talks between representatives of Serbia and the IMF will focus on the latest fiscal, monetary and macroeconomic developments, with special emphasis on the draft law on fiscal responsibility, which should be introduced into parliamentary procedure by mid-September, the NBS announced.

At the end of last week, the mission had preparatory, technical talks with Serbian representatives.

The International Monetary Fund started reviewing a €2.9 billion ($3.7 billion) bailout loan deal with Serbia on Monday against a backdrop of weak economic indicators, with the national currency falling and prices surging.

An IMF delegation met Serbian government officials for a scheduled evaluation of the latest fiscal, monetary and macroeconomic developments. The review is the fifth since the two-year loan was first approved in May 2009.

There is a split within the Serbian government over whether the country's budget inflow is strong enough to boost salaries and pensions in the state sector. The national bank governor says it is not, while a deputy prime minister urges IMF's de-blocking of state wages to boost economic activity.

The negotiations are being held amid a sharp drop of the Serbian dinar and resulting price hikes for staples such as bread, cooking oil and milk. The dinar is currently trading at 105.05 per euro — down from highs of 75.75 a euro in August 2009.

Serbia has already taken €1.4 billion from the original standby loan and the current talks will determine whether the IMF allows further withdrawals.

Serbia says it needs the IMF loan to boost its foreign currency reserves — which currently stand at €9.5 billion — to stabilize the dinar.

On May 15, 2009, the IMF approved to Serbia a stand-by arrangement worth approximately EUR three billion, which expires in April 2011.