Serbian government announced recently that it had reached a deal with the International Monetary Fund on a USD 520 million standby loan, which the country will be able to draw on in case of emergency over the next 15 months.

The released added that the loan, which requires final approval from the IMF board of directors and the Serbian government, was agreed recently during a visit by the Mr Albert Jaeger Chief mission of IMF in Serbia.

Ms Diana Dragutinovic Serbian Finance Minister said that "this stand by arrangement, reached out of precaution will give us the possibility to withdraw funds only if we need them, but we will do our best not to use them. She said that "the arrangement with the IMF counters the possible effects of the global financial crisis, strengthens the confidence of foreign investors and creditors and gives the feeling of security for all in Serbia."

Mr Jaeger, who spent over two weeks in Serbia discussing the loan, said that the government's fiscal policies in recent years have failed to use good times to prepare for a change in the cycle.