Belgrade  - Serbia and the International Monetary Fund (IMF) were due on Monday to open negotiations on a new, 2-billion-dollar standby credit, which the Balkan country needs for macroeconomic stability.

The IMF already approved 530 million dollars in drawing rights for Serbia in a 15-month deal in January. But Belgrade says it needs more in order to cope with the adverse effects of the financial crisis.

Serbia's currency, the dinar, has slipped against the euro in recent months, from 95 dinar to the euro to 75. At the same time, 2009 economic growth expectations have slipped from projections of 6 per cent to around 1 per cent.

In talks expected to last at least two weeks, the IMF mission is expected to ask Serbia to cut spending. In case of an agreement, the new standby loan would replace the existing deal. (dpa)