Serbia Public Expenditure and Public Utilities DPL 1

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This program document presents a Public Expenditure and Public Utilities Development Policy Loan (DPL), the first in a programmatic series of two operations,, to support the Government of Serbia's multi-year fiscal consolidation agenda and transformation of energy and transport sector public enterprises and state-owned companies. Structural and fiscal reforms are helping Serbia’s growth to recover after the 2008 global crisis exposed structural weaknesses in the economy. The government’s economic program, as set out in its Fiscal Strategy for 2016-18, focuses on fiscal consolidation to ensure macroeconomic stability, improving financial sector stability and resilience, boosting competitiveness, and ensuring sustainable growth. This DPL will support implementation of challenging reforms that are critical to the government’s fiscal consolidation and structural reform agenda. The operation has a substantial risk, but could bring high reward.