Udovicki: Macroeconomic situation is difficult

BELGRADE - Director of the Center for Advanced Economic Studies Kori Udovicki said Tuesday that the macroeconomic situation in Serbia is very difficult, adding that a delegations of the International Monetary Fund (IMF) is visiting our country to determine how urgent are measures that will have to be taken by Serbia’s new government.

Udovicki, former governor of the National Bank of Serbia (NBS), said that after the snap parliamentary elections, scheduled for March 16, Serbia will have to take very decisive action in three directions.

The first is to go on to reduce the budget deficit and offer assurances to foreign partners that Serbia is a secure business environment.

It is vital to start solving problems caused by illiquidity stemming from huge amount of mutual debts on the domestic market, Udovicki said about the second direction the measures need to take.

The third direction is to improve the policy environment for the private sector, said Udovicki.

The IMF Mission to Serbia has told Tanjug that the IMF delegation is coming to Serbia tomorrow, and as previously announced, the talks will focus on the situation in public finances and possibly on a new precautionary arrangement between Serbia and the IMF.

The IMF Mission said that the delegation, led by Zuzana Murgasova, will be in Serbia until March 13, but could add any details about topics of discussion with Serbia's officials.

Photo Tanjug, N. Milosevic (archive, illustration)