Signing arrangements with IMF one of the first tasks for Lazar Krstic – Tabakovic

BELGRADE – National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic stated on Saturday that one of the first objectives of Lazar Krstic, future minister of finance, will be signing an arrangement with the International Monetary Fund (IMF) which Serbia needs in addition to its foreign currency reserves of EUR 10.7 billion.

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Tabakovic told TV Pink that this arrangement is necessary not only for the loan, but also because the country needs a good advisor and controller.

The NBS governor said that she is glad that Krstic has accepted the position of minister of finance.

As for the government reshuffle, she said that the central bank should provide a stable framework for implementing the economic policy of the reshuffled government.
“This implies adjusting expenditure to realistic possibilities, and thus the most difficult task for this government is to spend in line with what is feasible given the constraints of the high budget deficit which it has to finance,” the governor said.

Inflation is on a downward track and by the end of October it will return to the target framework of four plus or minus 1.5 percent, she said, noting that average monthly inflation stands at 0.2 percent.

Speaking about the possibility of limiting the size of banks’ interest rates, Tabakovic said that the NBS can influence only the reference interest rate, adding that in a market economy, administrative limitation of banking interest rates has almost never provided any advantages for the citizens.

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