IMF Boosts Loan To Serbia To EUR2.9 Billion.

"The International Monetary Fund (IMF) said Friday it had sharply increased its loan to Serbia to EUR2.9 billion to help the country cope with a worse-than-expected impact from the global economic crisis. The IMF's initial, 15-month Stand-By Arrangement financing for Serbia, approved on January 16, had been set at $394 million...." [Agence France Presse (5/16)/Factiva]

Reuters adds that "...the agreement allows for the immediate release of about $1.07 billion, the IMF said, also noting that the agreement will last through mid-April 2011. The IMF said Serbia's external and financial environment has deteriorated 'abruptly and relentlessly' since the original loan agreement was designed in late 2008...." [Reuters (5/16)/Factiva]

Dow Jones reports that "... 'With the global economy in recession, Serbia's exports and imports have plunged, and capital flows have largely dried up. The outlook has deteriorated markedly and remains subject to downside risks. Economic activity is likely to shrink this year, with limited prospects of recovery in 2010,' IMF Deputy Managing Director Murilo Portugal said in a statement...." [Dow Jones (5/16)/Factiva]