A successful implementation of Serbia's stand-by credit arrangement with the International Monetary Fund (IMF) is one of the ways for the country to achieve economic stability, Head of Delegation of the European Union to Serbia Ambassador Vincent Degert stated on Thursday, noting that Serbia's economy is still subdued by the crisis and is recovering at a slow pace.

Degert expressed expectation that the negotiations with the IMF will be completed in the course of the week, and pointed out that budget expenditure and certain ministries' demand for budget funds should be kept within reasonable limits.

At the opening of the 9th Belgrade Stock Exchange International Conference dubbed 'Upgrade in Belgrade 2010', Degert warned against the persisting risk of fiscal expansion, and noted that the government needs to launch a reform of the public sector and government companies.

He assessed that the situation on the regional capital market is similar to that in Serbia - the stock markets are small, their turnover low, and the influence of the stock exchange on the economy insufficient.

The EU ambassador noted that the report of the European Commission (EC) on the progress made in European integration in 2010 underlined that the local Commission for Securities is not independent enough and does not meet international standards.