NBS' Governor: Serbian Dinar stable, no worries

Source: Tanjug/Zoran Žesić

Jorgovanka Tabakovic, the National Bank of Serbia (NBS) Governor, said on Monday the local Dinar currency was stable and didn't worry foreign investors in Serbia.

She added she was dissatisfied with the International Monetary Fund (IMF) projection about Serbia’s1.5 percent GDP.

Speaking to the state RTS TV, Tabakovic said the NBS previously had a conservative estimate of GDP income of minus one percent.

„Many doubted that the arrangement with the IMF would take place, and now we are at the end of the second advisory arrangement,“ Tabakovic said, adding that due to the unified fiscal policy and cooperation of all institutions, the Bank was named „guardhouse“.

„Spending as much as you earn is a unique and harmonised financial policy of all institutions, and above all, the Government and the NBS. That is why a stable Dinar no longer worries anyone, and most importantly, investors who place money here,“ Tabakovic she added.

She said that as of September, foreign investors had already invested 1.8 billion Euro in the country, and the expectation was it would reach 2.3 billion by the end of the year.

„The foreign debt will not exceed 59 percent (of the GDP),“ Tabakovic said, adding Serbia had only about 3.5 percent of problem loans and that the NBS would maintain their current level.

She said she regretted the decision of commercial banks not to accept the NBS’ recommendation to reduce the downpayment for housing loans from 20 to 10 percent and that they would have to fight for the clients in the long run since a domestic bank took the NBS’s advice