Government representatives will launch talks with International Monetary Fund (IMF) officials at the National Bank of Serbia on Aug. 22 to discuss closing a precautionary arrangement.

According to announcements, the arrangement will last 18 months and Serbia will have the chance to borrow EUR1 billion from the IMF, if need be. If the deal is finalized, the IMF Board of Directors could approve it by late September.

Government, central bank and IMF representatives will hold a number of meetings during which they will analyze macroeconomic trends in Serbia, the potential impact of the global economic crisis on Serbia's economy and measures by the country's economic and monetary authorities to mitigate the consequences of the crisis.

Fiscal policy for 2011 and 2012 will also be examined, chiefly fiscal rules for limiting the deficit, which must not exceed 4.1 percent of GDP this year. Other topics will include reforms of the public sector, health care, education and pension system, as well enhancing the investment climate.

The IMF mission, headed by Albert Jaeger, will stay in Belgrade until Aug. 30.