Belgrade  - Serbia is "wasting respect" by altering the conditions it offered for a loan from the International Monetary Fund (IMF), the country's central bank chief said in an interview released Wednesday.

"In the IMF they're surprised at the quick change of position by the Serbian government," Jelasic, a frequent and outspoken critic of government economic policies, told the daily Press.

Belgrade and the IMF last Wednesday to agreed a two-year, 4- billion dollar standby arrangement last week to help Serbia overcome the crippling effects of the international financial crisis.

For its part, Serbia said it would cut spending through a rebalanced budget, secure the existing level of foreign credits for the private sector and boost revenue through additional taxes.

But following a backlash from the public, officials however on Friday said they would find sources other than the planned 6-per-cent tax on all but the smallest salaries of 175 dollars and below to cover the financial shortfall.

The IMF may still accept alternate sources of revenue and approve the deal when its board meets in May, but the impression Serbia has left was not as good after it retracted on its words, Jelasic said.

"It's a problem ... because you come out and say one thing and two days later you say something else," Jelasic said. In his estimate, Serbian government ministers changed their mind because "the public reaction was not what they expected."

Alternate sources may include excise taxes on fuel and mobile phone bills and additional spending cuts, Jelasic said. (dpa)