Financial system "more resilient to foreign influence"

Serbia's financial system has grown more resilient to international influences, National Bank of Serbia Governor Jorgovanka Tabakovic said on Monday.

this is primarily thanks to a reduced share of public debt in Serbia's Gross Domestic Product (GDP), as well as the more frequent use of the dinar in transactions, Beta agency is reporting.

At the presentation of the Annual Financial Stability Report for 2017, Tabakovic cited a rise of Serbia's credit rating and the successful completion of a three-year arrangement with the International Monetary Fund (IMF) as indicators of a good financial situation.

She also said the stability of Serbia's banking system was important for maintaining financial stability as Serbia's financial sector centered on banks.

Tabakovic further said she expected economic growth to pick up in the coming period and to reach around 3.5 percent in 2018 and 2019, while inflation would remain low and stable and the exchange rate would also remain relatively stable. She added that in 2017, the dinar had strengthened 4.2 percent against the euro.

The governor stressed that a decrease in the unemployment rate and growth of salaries were coupled with a rise in consumer loans and savings. She also said that households were also offered a new form of safe investment after the Republic of Serbia had issued a new financial instrument - savings bonds

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