World Bank officials report that the Serbia's economy is showing signs of recovery.

However, the government will have to make reforms in the public sector, to cut the budget gap and to save the remaining amount of the 3 billion euro IMF loan.

Last week IMF allowed Serbia to expand its 2009 fiscal deficit to 4.5% of GDP. The previously allowed deficit was 3% from GDP.

The World Bank will credit Serbia with 310.4 million euro. At the same time, Serbia seeks commercial loans from banks to fund its deficit.