Serbia Accepts IMF Terms, Paving Way for Loan Tranche
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The International Monetary Fund and Serbia reached a “staff level agreement” after the government in Belgrade committed to meeting deficit and other fiscal targets under the 2011 budget, paving the way for the disbursement of the next loan tranche.
The agreement needs to be approved by the IMF board of directors, the lender said in a statement today. Serbia pledged to cut its 2011 budget gap to 4.1 percent of gross domestic product from 4.8 percent this year, freeze subsidies at 2010 levels and allow a modest rise in public wages and pensions.