Official talks between representatives of the Serbian government and the mission of the International Monetary Fund (IMF) regarding a precautionary agreement kicked off on Monday.

Serbian Prime Minister Mirko Cvetkovic will confer with the IMF delegation on Monday, the PM's cabinet announced.

The IMF mission, headed by Albert Jaeger, began technical talks with Serbian authorities last week, and it is to stay in Belgrade until August 30.

The precautionary arrangement provides the right to make drawings should the need arise. The preliminary talks on the arrangement took place in May this year. The arrangement would last 18 months and Serbia would have access to 200 percent of its IMF quota, which is about EUR one billion.

The talks between the IMF delegation and Serbian representatives will touch on the latest macroeconomic trends in the country, the impact of the current global financial crisis on the Serbian economy, and economic policy measures to overcome external risks and mitigate potential effects of the crisis, the National Bank of Serbia has said.

Special focus will be laid on implementing the fiscal policies for 2011 and 2012, while the main goal is to make sure that the budget deficit remains in line with the fiscal rules.

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.

If an agreement on economic policy for the coming period is reached during the mission's stay, the IMF Executive Board could approve the precautionary arrangement with Serbia in late September.