NBS reduces projected economic growth for 2012

The National Bank of Serbia (NBS) believes Serbia's GDP will grow 1.5 percent in 2012, and some 2 percent this year, NBS Governor Dejan Soskic said on Monday. The NBS reduced earlier its projections for this year from 3 to 2.5 percent. NBS reduces projected economic growth for 2012 The changes in the prognosis for next year are largely based on the assumption that Serbia's biggest economic partners in the EU, Italy, Germany and Romania, are going to record low GDP growth because of the economic crisis, Soskic told a news conference. He expects the International Monetary Fund to come up with similar 2012 projections for Serbia. According to NBS estimates, the 2012 GDP growth will mostly be guided by growing investments and net export to a lesser extent, while the final expenditure will have a negative impact this year as well, the governor noted. He quoted the national office of statistics in saying that the real GDP growth between the third quarters of 2010 and 2011 was significantly lower and stood at 0.7 percent. Commenting on the possibility of the eurozone crisis spilling over into Serbia, Soskic stated the NBS was carefully monitoring all banking operations and that there were no disturbing activities there. According to him, the NBS has mechanisms to respond to a potential spread of the international financial crisis into Serbia's system. Soskic addresses reporters in Belgrade on Monday (Tanjug) Foreign currency reserves at EUR 11.27bn The foreign currency reserves of the National Bank of Serbia (NBS) went down by EUR 86mn in October to reach EUR 11.27bn at the end of the month, the central bank stated on Monday. This was mostly the result of settlement of debts to foreign creditors with EUR 63.6mn allocated from the foreign currency reserves. At the same time, the banks withdrew the net amount of EUR 50.2mn based on the mandatory foreign currency reserves. During October, inflow of funds collected on the basis of granted loans amounted to EUR 78.5mn. The net foreign currency reserves, i.e. the reserves reduced by the amount of banks' foreign currencies on the basis of mandatory reserves, and the funds drawn from the International Monetary Fund (IMF) amounted to 6.58bn euros at the end of October. The volume of interbank trade in the foreign exchange market came to EUR 1.26bn in October, which is EUR 846.2mn less than in September. Since the beginning of the year, the total of EUR 16.3bn was realized in the interbank trade. October saw nominal strengthening of the dinar against the euro by 0.7 percent, while the NBS did not intervene in the interbank foreign exchange market.

NBS reduces projected economic growth for 2012

The changes in the prognosis for next year are largely based on the assumption that Serbia's biggest economic partners in the EU, Italy, Germany and Romania, are going to record low GDP growth because of the economic crisis, Šoškić told a news conference.

He expects the International Monetary Fund to come up with similar 2012 projections for Serbia.

According to NBS estimates, the 2012 GDP growth will mostly be guided by growing investments and net export to a lesser extent, while the final expenditure will have a negative impact this year as well, the governor noted.

He quoted the national office of statistics in saying that the real GDP growth between the third quarters of 2010 and 2011 was significantly lower and stood at 0.7 percent.

Commenting on the possibility of the eurozone crisis spilling over into Serbia, Šoškić stated the NBS was carefully monitoring all banking operations and that there were no disturbing activities there.

According to him, the NBS has mechanisms to respond to a potential spread of the international financial crisis into Serbia's system.

Foreign currency reserves at EUR 11.27bn

The foreign currency reserves of the National Bank of Serbia (NBS) went down by EUR 86mn in October to reach EUR 11.27bn at the end of the month, the central bank stated on Monday.

This was mostly the result of settlement of debts to foreign creditors with EUR 63.6mn allocated from the foreign currency reserves. At the same time, the banks withdrew the net amount of EUR 50.2mn based on the mandatory foreign currency reserves.

During October, inflow of funds collected on the basis of granted loans amounted to EUR 78.5mn.

The net foreign currency reserves, i.e. the reserves reduced by the amount of banks' foreign currencies on the basis of mandatory reserves, and the funds drawn from the International Monetary Fund (IMF) amounted to 6.58bn euros at the end of October.

The volume of interbank trade in the foreign exchange market came to EUR 1.26bn in October, which is EUR 846.2mn less than in September. Since the beginning of the year, the total of EUR 16.3bn was realized in the interbank trade.

October saw nominal strengthening of the dinar against the euro by 0.7 percent, while the NBS did not intervene in the interbank foreign exchange market.