A delegation of the International Monetary Fund (IMF) will arrive in Belgrade on Aug. 18, to continue talks with the representatives of Serbian authorities on signing a new precautionary credit arrangement.

BETA learned from the Fund's office in Belgrade that the IMF delegation, headed by the chief of its mission to Serbia, Albert Jaeger, will stay in Serbia from Aug. 18 to 31.

The precautionary arrangement envisages a possibility, but not the obligation, for a financial loan to be obtained from the IMF. According to earlier announcements, the Serbian government does not intend to draw the funds that will be reserved.

According to announcements by IMF representatives, around EUR1 billion could be reserved for Serbia within the future arrangement, which is around 200 percent of the country's quota with this international financial institution.

National Bank of Serbia Vice Governor Bojan Markovic said on Aug. 17 that there have been no announcements yet that the precautionary arrangement with the IMF could be transformed into a stand-by arrangement.

Markovic said that "the character of the arrangement is always determined on the basis of the economic situation in the country and the estimates so far have been that the precautionary arrangement is the best form of deal, which corresponds with the economic situation in Serbia."