Serbian government officials have opened discussions with a delegation from the International Monetary Fund as they seek a new stand-by loan for the Balkans country.

Serbian Prime Minister Mirko Cvetkovic met with an IMF delegation led by Albert Jaeger Monday in Belgrade. The two men agreed that strict budget restrictions and cutting expenditures at all levels of government are necessary.

Serbia is hoping to reach agreement for a precautionary loan worth up to $1.4 billion.

The IMF delegation will remain in Serbia through August 30. Talks will also include revisions to the 2011 budget and a draft budget for 2012.