Representatives of the International Monetary Fund (IMF) has arrived in Belgrade to have talks on a new precautionary arrangement with the Serbian authorities, the National Bank of Serbia (NBS) has said.

The precautionary arrngement would last 18 months and Serbia would have access to funds in the amount of about EUR one billion, which it could withdraw if needs arise.

The IMF mission, headed by Albert Jaeger, will be staying in Belgrade from August 18 until 30.

If the mission and the Serbian government agree on an economic policy to be implemented in the future, the IMF Executive Board could approve the new precautionary arrangement at the end of September.

The talks will focus on the latest macroeconomic developments in the country, the impact of current global financial crisis on the Serbian economy and economic policy measures to overcome external risks and mitigate the possible consequences of the crisis.

Special attention will be paid to the implementation of fiscal policy in 2011 and 2012, the main objective being that the fiscal deficit remains consistent with the adopted fiscal responsibility policies.

Discussions on structural reforms will touch upon public enterprises and reforms in health-care, education and pension systems, as well as on ways to improve investment climate.

The official talks between representatives of Serbia and the IMF mission will begin with a plenary meeting at the NBS premises on August 22.