The mission of the International Monetary Fund (IMF) and representatives of the Serbian government will continue official talks on a precautionary arrangement at technical expert level on Wednesday.

A release issued after official meetings and talks with Prime Minister Mirko Cvetkovic, Deputy Prime Minister Jovan Krkobabic and Minister of Labour and Social Policy Rasim Ljajic states that the IMF mission would continue talks with representatives of the Finance Ministry regarding the 2011 budget review scheduled for September, adding that the frameworks of the 2012 budget would also be defined.

Apart from the latest macroeconomic developments in Serbia, during its stay in Belgrade the IMF mission and the country's officials will also discuss the influence of the global financial crisis on the local economy, as well as the measures of economic policy aimed at overcoming external risks and alleviating the consequences of the crisis.

In respect of structural reforms, officials will discuss public enterprises and reforms in the educational, pension and healthcare system, as well as the enhancement of investment climate in Serbia.

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.