WARSAW (Reuters) - The International Monetary Fund (IMF) is ready to support Serbia with a financial arrangement and advice to help the country curb its debt in the medium-term, the IMF’s representative for central and eastern Europe said.
Serbia’s government is expected to detail painful spending cuts later on Tuesday, as it eyes a deal with the IMF early next year to reassure investors and cut borrowing costs.
“We are ready to support them in any way that suits,” said James Roaf, IMF’s Senior Resident Representative for central and eastern Europe.
“If they want advice we can provide advice, if they want a financial arrangement we can work with them to do that,” he told Reuters in an interview authorized for release on Tuesday.
Roaf said that economic growth across the region should be higher next year, but there were still significant risks, including those stemming from bank deleveraging in western Europe.
“We see almost all the countries in the region having stronger growth next year and that would be aided by the recovery in western Europe,” he said.
“But there are still significant risks and vulnerabilities ... Across the region there is a risk of further deleveraging and slow credit growth.”
Reporting by Marcin Goettig and Marcin Goclowski; Editing by Christian Lowe