Tabakovic: Serbia's financial system "stable"

Serbia's financial system remained stable last year in spite of external risks, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said on Thursday.

The country's financial system succeeded in remaining highly capitalized, highly solvent and stable in 2016 despite the risk that resulted from developments in the eurozone and divergence of ECB and FED monetary policies, Tabakovic added.

Speaking at the presentation of the Annual Financial Stability Report for 2016, the central bank chief said internal and external economic imbalances had been reduced last year and that investor confidence had been maintained and GDP growth accelerated to 2.8 percent.

She particularly stressed that by coordinating fiscal and monetary policies, Serbia's risk premium dropped to 140 points.  "Such figures are unheard of," Tabakovic said.

"The cycle of key policy rate...