The Monday talks between Serbian Prime Minister Mirko Cvetkovic and representatives of the International Monetary Fund (IMF) concluded that it is necessary to stick to fiscal rules, implement spending cuts at all levels of government, and continue reforms aimed at improvement of investment climate in Serbia in the upcoming period.

The PM stated that a precautionary agreement with the IMF is very important since it enables Serbia to make drawings should the need arise, and in the manner assures all foreign investors that the country is implementing a credible economic policy.

The meeting between Cvetkovic and the IMF mission, headed by Albert Jaeger, discussed the macroeconomic trends by the end of the year, and the PM announced that an adjustment and increase in salaries and pensions will take place in October as envisaged by the law.

The IMF mission will continue the talks with representatives of the Ministry of Finance on the budget revision planned for September, and determine the budget framework for 2012, the Serbian government's press office stated.