The European Bank for Reconstruction and Development (EBRD) feels that Serbia needs stronger reforms since growth is expected to slow to 3.5 percent this year, the Beta news agency reported on Wednesday quoting the bank’s latest transition report.
The EBRD report says that the Serbian economy still faces significant fiscal risks because of the large, non-reformed state-owned companies while reforms in the public sector and Tax Authority are slow. Productivity continues to stand lower than 20 percent of the average in the European Union.
Serbia needs to improve the business environment, secure better access to financing for small and medium companies along with transparent rules with equal implementation for all. The report said the private sector would benefit from the development of non-banking institutions, simpler tax procedures, lower para-fiscal dues and greater predictability of tax authority decisions and services.
The EBRD also warned that additional efforts have to be invested in supporting market transactions with NPLs with easier access to information on those bad loans for potential investors along with upgraded out-of-court restructuring and a higher level of judiciary efficiency.
The report said that Serbia has achieved significant fiscal consolidation with support from the IMF, recording a fiscal surplus and a drop in the public debt.