Best Growth Stock – The International Monetary Fund (IMF) has approved new standby credit agreement (“stand by”) to Serbia worth 1,000 million euros to help the country maintain economic stability.
Serbian Prime Minister Mirko Cvetkovic announced last night the decision and indicated that, as agreed in the negotiations completed last month, the IMF “reserve” that money to make it available to Serbia in case of major problems or crises in the next 18 months, Serbian media reported today.
“As we now, these resources will not be necessary, but the deal is significant because it shows that our economic policy is correct and is supported by the IMF experts. This has positive effects on the country’s position on potential foreign investors,” said Cvetkovic.
The IMF recently warned that the debt crisis that crosses the eurozone this year will affect growth in the Balkan country, which will drop to 2 percent from 3 percent originally planned.
The budget deficit in 2011 reached 4.5 percent of GDP in 2012 to 4 percent percent, according to government data.
Serbia agreed in 2009 an agreement with the IMF amounting to 2,900 million euros for a period of two years, subject to the implementation of measures to cut public spending. That loan has already received more than 1,300 million.
Category: Business News