Serbia and World Bank sign EUR69m loan

Serbia’s Finance Minister Dusan Vujovic and World Bank Country Manager for Serbia Tony Verheijen have signed a EUR69m results-based loan. The loan will support Serbia’s efforts to improve efficiency in public sector employment and finances.

The Serbian government embarked on an administrative reform effort with its launch in 2014 of the Public Administration Reform Strategy and the Action Plan for its implementation, the World Bank noted.

 “Along with an improving business climate and restructuring of public companies, reforms in the public sector should clear the field for faster private sector development and new job creation, as well as ensure Serbia’s readiness for EU accession,” Verheijen said.

“This program supports the establishment of a merit-based public service system and an efficient public administration. It will contribute to better use of scarce fiscal resources in order to create space for investments in important infrastructure,” he added.

A unique feature of the agreement is that, for the first time, the World Bank and the EU are jointly financing a single government program, aligning EU Sector Budget Support and World Bank result-based financing.

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