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The new finance minister, Krstic, is quoted by reuters as suggesting that they will look for new talks with the IMF only early in 2014...that is a long way away, especially with Serbia still having a tricky budget financing situation, given the tapering warning from the Fed (it is going to eventually happen) and with Ukraine currently melting. I guess the fear is that talks will drag out and then we might be in the Spring, and then Vucic and the SNS might be focused on early Spring elections, and hence then they might end up stalling to mid year for a new programme.
I would have hoped for a greater sense of urgency from the new team at the MOF. DSK has been in town and had suggested that he needed a couple of months to figure a way forward for the country on the budget/debt financing front, so that seems to be the timeframe. I would have thought that Serbia was a cast iron case of a country in need of an IMF programme, both for the policy anchor and the cash. There has been a lot of talk of new Middle East money, and WB credits, but the former might be slow to arrive, and Serbia will likely need to come to the Eurobond market soon.
bne- Standard Bank
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