{ "title": "Serbia Completes Successful IMF Program", "publication": "IMF News, February 22, 2018", "sourceUrl": "https://www.imf.org/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program", "canonical": "https://www.imf.org/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program", "overlayPath": "/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/index.md", "summary": "Serbia exits a $1.32 billion three-year program with the IMF on February 22, after outperforming several of its goals. But this is only the first step in building a strong and vibrant economy able to compete globally, says the IMF.
", "authors": [ "Arrangement Reforming" ], "publishDate": "2018-02-22", "sections": [ { "heading": "Program outcome and overview", "content": "- Serbia exits a $1.32 billion three-year program with the IMF on February 22, after outperforming several of its goals.\n- The IMF characterizes the program as having “done much better than expected, overperforming many of its macroeconomic goals.” — James Roaf, head of the IMF’s Serbia team.\n- Concluding the program is described as “only the first step” toward building a strong and vibrant economy able to compete globally." }, { "heading": "Economic turnaround and recent performance", "content": "- In 2014 Serbia’s economy was in serious trouble following the 2008 global financial crisis: stagnation, weak public institutions, collapsing tax receipts, and overspending by government and state-owned enterprises led to a rapid buildup of public debt.\n- Authorities adopted an ambitious program of fiscal adjustment, financial sector strengthening, and broad-based economic reforms; the IMF provided economic advice, monitoring, and precautionary financing.\n- After three years under the program:\n - The fiscal accounts moved from having the second-largest deficit in Europe in 2014 to boasting a surplus in 2017.\n - Growth has returned, coupled with rising investment and employment.\n - Economic confidence has improved with stronger investment both from foreign and domestic sources.\n - Unemployment is near historic lows, and falling.\n - Banks are solid, and nonperforming loans are now below their precrisis levels." }, { "heading": "Remaining challenges and priority reforms", "content": "- The IMF emphasizes the need to deepen reforms post-program to reach Serbia’s full potential and to prevent the exodus of skilled workers to Western Europe.\n\n- Reform institutions and public services:\n - Strengthen institutions to support private-sector-led growth.\n - Modernize tax administration and public services such as education and health.\n - Improve efficiency of public services to enhance social protection.\n - Develop financial markets and promote broader use of the Serbian dinar instead of the euro.\n - Increase labor market participation—especially of women—and reduce informality.\n - Implement wide-ranging reforms to address the large gray economy.\n\n- Overhaul state-owned enterprises:\n - Noted successes: restructuring of the railway company, improved debt collection in main electricity and gas companies, privatization of Smederevo steelworks.\n - Remaining state-owned enterprises in need of reform or resolution include:\n - Resavica coal mine\n - RTB Bor copper complex\n - Petrohemija\n - MSK\n - Azotara\n - Several state-owned financial institutions also need reform or privatization, including BPS and Komercijalna banks and Dunav insurance company.\n\n- Improve the business climate:\n - Progress has attracted more investors due to better economic stability and stronger regulation.\n - Constraints that still limit business investment and expansion:\n - Tax and regulatory systems\n - Multiple fees and charges\n - Delays and uncertainty in the judicial system\n\n- Build better infrastructure:\n - Upgrading road, telecommunications, and energy networks is essential to propel Serbia toward a standard of living that rivals that of Western Europe.\n\nSerbia Completes Successful IMF Program — February 22, 2018, International Monetary Fund\n\n---\n\n Content in this bundle\n\n- Microsoft Word\n - Microsoft Word (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Microsoft Word (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF report\n- Stand-By Arrangement\n- Reforming the Judiciary in Central, Eastern, and Southeastern Europe\n- Central, Eastern, and Southeastern Europe: Harnessing the Power of Good Governance (blog)\n- Public Infrastructure in Western Balkans: A Highway to Higher Income\n- Serbia’s Economic Program Aims to Support Growth and Job Creation (2015)\n- Serbia and the IMF\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/index.md)", "[Structured JSON version](/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/index.json)", "[Bundle manifest](/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/bundle-manifest.json)", "Authors: Arrangement Reforming", "Published: February 22, 2018", "Serbia exits a $1.32 billion three-year program with the IMF on February 22, after outperforming several of its goals.", "The IMF characterizes the program as having “done much better than expected, overperforming many of its macroeconomic goals.” — James Roaf, head of the IMF’s Serbia team.", "Concluding the program is described as “only the first step” toward building a strong and vibrant economy able to compete globally.", "In 2014 Serbia’s economy was in serious trouble following the 2008 global financial crisis: stagnation, weak public institutions, collapsing tax receipts, and overspending by government and state-owned enterprises led to a rapid buildup of public debt.", "Authorities adopted an ambitious program of fiscal adjustment, financial sector strengthening, and broad-based economic reforms; the IMF provided economic advice, monitoring, and precautionary financing.", "After three years under the program:", "The IMF emphasizes the need to deepen reforms post-program to reach Serbia’s full potential and to prevent the exodus of skilled workers to Western Europe.", "Reform institutions and public services:", "Overhaul state-owned enterprises:", "Improve the business climate:", "Build better infrastructure:", "**Microsoft Word**", "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)", "[PRESS CENTER](http://presscenter.imf.org/)", "[IMF report](http://www.imf.org/en/Publications/CR/Issues/2017/12/21/Republic-of-Serbia-Eighth-Review-Under-the-Stand-By-Arrangement-Press-Release-Staff-Report-45506)", "[Stand-By Arrangement](http://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/20/33/Stand-By-Arrangement)", "[Reforming the Judiciary in Central, Eastern, and Southeastern Europe](http://www.imf.org/en/Publications/REO/EU/Issues/2017/11/06/Eurreo1117)", "[Central, Eastern, and Southeastern Europe: Harnessing the Power of Good Governance (blog)](https://blogs.imf.org/2017/07/27/central-eastern-and-southeastern-europe-harnessing-the-power-of-good-governance/)", "[Public Infrastructure in Western Balkans: A Highway to Higher Income](http://www.imf.org/en/News/Articles/2018/02/01/na020818-public-infrastructure-in-the-western-balkans-a-highway-to-higher-income)", "[Serbia’s Economic Program Aims to Support Growth and Job Creation (2015)](http://www.imf.org/en/News/Articles/2015/09/28/04/53/socar030315b)", "[Serbia and the IMF](http://www.imf.org/en/Countries/SRB)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "related": [ { "title": "Microsoft Word", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/news/news-articles/other-loe/2018/na022218serbian.pdf", "summary": { "path": "/-/media/files/news/news-articles/other-loe/2018/na022218serbian.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/news/news-articles/other-loe/2018/na022218serbian.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/index.md", "json": "/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/index.json", "bundleManifest": "/en/news/articles/2018/02/21/na022218-serbia-completes-successful-imf-program/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T21:35:22.379Z" }