“Restrictive monetary policy to let up soon”

Secretary General of the Association of Serbian Banks Veroljub Dugalić says that the restrictive monetary policy will be relaxed in the early stages of 2009.

Izvor: Beta

Tuesday, 06.01.2009.

15:05

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Secretary General of the Association of Serbian Banks Veroljub Dugalic says that the restrictive monetary policy will be relaxed in the early stages of 2009. Dugalic also expects the speedy implementation of the government’s planned and adopted measures. “Restrictive monetary policy to let up soon” “Depending on whether the government’s priority will be checking inflation or increased economic development and reviving industry, we will see how the reference interest rate will react. But, even if there is a cut soon, it will be negligible,” he told the Privredni Pregled newspaper. Dugalic said that the “Serbian banking sector is stable and safe, and is not facing problems that are the direct consequences of the world financial crisis.” He added, however, that “although the banking system is well organized and has a strong capital base, we will be faced this year with more difficult access to foreign capital, uncertainty in terms of the movement of interest rates and a downturn in direct investment, which will have a direct bearing on the exchange rate.”

“Restrictive monetary policy to let up soon”

“Depending on whether the government’s priority will be checking inflation or increased economic development and reviving industry, we will see how the reference interest rate will react. But, even if there is a cut soon, it will be negligible,” he told the Privredni Pregled newspaper.

Dugalić said that the “Serbian banking sector is stable and safe, and is not facing problems that are the direct consequences of the world financial crisis.”

He added, however, that “although the banking system is well organized and has a strong capital base, we will be faced this year with more difficult access to foreign capital, uncertainty in terms of the movement of interest rates and a downturn in direct investment, which will have a direct bearing on the exchange rate.”

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