The International Monetary Fund (IMF) mission will stay in Belgrade from August 18 -31, where it will discuss a new precautionary arrangement with the Serbian authorities, Tanjug learned at the IMF Office in Belgrade.

As in the talks on the previous Stand-By Arrangement, the mission will be headed by Albert Jaeger.

IMF resident representative in Belgrade Bogdan Lissovolik told Tanjug that the talks will also deal with possible impacts that the current economic turmoil in the world markets might have on Serbia, given that each round of talks opens with an estimate of prevailing economic trends.

If the agreement is reached during the mission's stay, the precautionary arrangement with Serbia could be approved in late September, he added.

Lissovolik underlined that the talks will also focus on the country's budgetary policy for 2011-2012.

When asked whether the IMF will give certain recommendations to the Serbian government in relation to the budget review which is expected in September, he said that the scope and time necessary for revision of this year's budget are yet to be determined.

The IMF representative said that the common goal is to make sure that the budget deficit is in line with the fiscal rules stipulated by the Law on Budget System

At the recent meeting in the Serbian government dedicated to the current financial market turmoil, the officials qualified as vital a new pre-cautionary arrangement which Serbia should soon sign with the IMF.