NEWS

NBS ASKS IMF TO ENABLE EARLY DEBT PAY OFF

BELGRADE, Nov 23 (Tanjug) - The National Bank of Serbia (NBS) has asked from the International Monetary Fund to enable Serbia early pay off of some 468 million dollars of the debt, which would be done in two installments - the first would be by the end of 2006, and the second in March 2007, NBS said in a statement on Thursday. NBS sent a letter on November 17 this year to IMF Director General Rodrigo de Rato, by which he informed the international financial institution about the intention to pay off ahead of time the remaining debt incurred within the last three-year financial arrangement. It was proposed that the remaining debt that totals 316.7 million special drawing rights, or around 468 million dollars, be paid off in two installments - the first by the end of 2006, and the second in March 2007.

Taking into account the inflow of funds from privatisation, direct foreign investments, as well as the continued growth of foreign currency reserves that by the end of October reached the level of 10.31 billion dollars, NBS considers that conditions have been met to continue with the early pay off of the debt to the IMF, which was started in June 2006.