International Monetary Fund (IMF) Permanent Representative in Serbia Bogdan Lissovolik stated Monday that Serbia's projected economic growth is still two percent for 2011 and three percent for 2012, and that the country needs to introduce measures to protect itself from economic crisis and step up economic growth.

He stated for the Radio and Television of Serbia that just like all other regional countries, Serbia is not isolated from the crisis in the eurozone, which is the country's largest trade partner, adding that in order to protect itself from crisis Serbia will have to introduce defensive and offensive measures.

Due to the Eurobonds, Serbia will not depend on the short-term debt financing as long as it remains in the domain of its target deficit, Lissovolik said, adding that the IMF insurance policy is a defensive measure.

Noting that the banking system in Serbia is adequately capitalized since banks have good liquidity, he underlined that the economic growth should be the focal point of the Serbian economy.

Serbia should consider the manners in which it could increase its economic potentials, Lissovolik said, adding that the IMF program has so far been focused on three areas including improvement of business climate and conditions, enforcement of the Law on Restitution and reform of public enterprises.

When asked about the budget review, which was adopted by the Serbian government and is to be tabled in the parliament, Lissovolik said that the budget is generally in keeping with the agreement and that no problems in that sense are expected.