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Serbia: IMF as Last Exit
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After unsuccessful negotiations in spring, Serbia is forced to ask the IMF for financial support. The fiscal policy is not the only weak point of the Balkan country.

Serbia´s main problem is the persistently high budget deficit. This year, the country is expected to reach a fiscal gap of 8.3% of GDP.
What is more, the Balkan country is highly vulnerable to foreign sentiments. In the last months, the yield on Serbian sovereign bonds was up steadily. The underlying reason for this development is the announcement of the Federal Reserve to…
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