Federal Republic of Yugoslavia: Membership and Use of Fund Resources—Request for Emergency Post-Conflict Assistance
IMF Staff Country Reports, January 8, 2001
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- Federal Republic of Yugoslavia: Membership and Use of Fund Resources—Request for Emergency Post-Conflict Assistance
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Bibliographic details
- Published: January 8, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451840841.002
Overview / Background
- The Federal Republic of Yugoslavia faces the task of stabilizing and reviving a devastated economy after years of military conflicts, sanctions, and economic mismanagement.
- A weakened institutional capacity and the still evolving political situation is identified as a cause for concern.
- A short-term macroeconomic strategy is required to bring down inflation.
- The fiscal position should be improved, and the continued incurrence of expenditure arrears should be avoided.
- The government should adopt a comprehensive economic program of stabilization and reform that can be supported by the IMF.
Key findings
- Economy described as "devastated" following years of military conflicts, sanctions, and economic mismanagement.
- Institutional capacity is "weakened" and the political situation is "still evolving."
- Immediate policy priorities include:
- Bringing down inflation through a short-term macroeconomic strategy.
- Improving the fiscal position.
- Avoiding continued incurrence of expenditure arrears.
- Adopting a comprehensive economic program of stabilization and reform that can be supported by the IMF.
Policy recommendations
- Implement a short-term macroeconomic strategy aimed at reducing inflation.
- Strengthen public financial management to improve the fiscal position and prevent new expenditure arrears.
- Adopt and seek IMF support for a comprehensive stabilization and reform program addressing macroeconomic stabilization and institutional rebuilding.