On behalf of the Serbian authorities, we would like to thank staff for the constructive policy dialogue as well as for their recognition of the substantial progress made under the Stand-by Arrangement (SBA). The arrangement plays a key role in supporting the authorities’ reform agenda which aims at ensuring macroeconomic stability by putting public finances on sustainable footing, strengthening the resilience of the financial sector, and implementing comprehensive structural reforms. Moreover, Fund’s engagement is helping catalyze support from other international financial institutions (IFIs), including technical assistance (TA), and improve investor confidence. Under the program, the Serbian authorities have implemented a broad range of bold and politically difficult policies to (i) reduce current expenditures, including public wages and pensions, (ii) minimize contingent fiscal risks stemming from unsound state-owned enterprises (SOEs), (iii) strengthen financial sector stability and intermediation, and (iv) improve the investment environment. These policies, which demonstrate the strong ownership by the Serbian authorities, are starting to yield tangible results such as the return to positive growth, continued fiscal over-performance, lower unemployment and further strengthening of the external position. Our authorities reiterate their strong commitment to the program and confirm their intention to treat it as precautionary.