Mali: Serbia to keep deficit below 3 pct, complete all projects by 2027

WASHINGTON - Serbian First Deputy PM and Finance Minister Sinisa Mali said Serbia would succeed in keeping its fiscal deficit below 3 pct over the course of a new three-year arrangement with the IMF and complete all planned projects.

Mali, who is attending the IMF/World Bank Group Annual Meetings in Washington, met with IMF Deputy Managing Director Bo Li, World Bank Vice President for Europe and Central Asia Antonella Bassani and the director of the IMF's European Department, Alfred Kammer.

Speaking to reporters after the meetings, Mali said Serbia would not only succeed in keeping the fiscal deficit below 3 pct but also continue to reduce the debt-to-GDP ratio and accomplish the goals under the Serbia 2027 programme.

"So a deficit of up to 3 pct is just the balance between the all-time-high investments we have and macroeconomic stability on the other hand. That deficit is one of the most important elements of the new three-year arrangement with the IMF," Mali said.

He said that his meeting with Kammer had addressed continued reforms in Serbia, particularly in the energy sector, in the tax administration and at public enterprises.

"Through those structural reforms, we want to demonstrate we are fully committed to our economic growth on one hand and, on the other hand, to making the environment in which our and foreign companies operate as stable, as interesting, as favourable and as attractive as possible. And that is why it is important that we are proceeding with building basic infrastructure, which everyone has commended. New motorways, new expressways, new railway lines and new power generation facilities," Mali explained.

He said he had had a very good meeting with Bassani and noted that Serbia was carrying out many projects with the World Bank.

"Our portfolio is worth slightly over 4.6 bln euros, believe it or not," Mali said, noting that Serbia maintained extremely good cooperation with the IMF and the World Bank.

He also said reforms in the country would be continued and that the public debt - currently at 46.5 pct of GDP - would remain below the Maastricht level as well as below the global average of 93 pct.