"Bail-out package depends on stable dinar"

Economists believe the state must generate funds from abroad and stabilize the dinar exchange rate soon in order for its bail-out package to work. After falling three days straight, the dinar has rallied somewhat over the last two days, with the official exchange rate on Thursday standing at RSD 94.1 to the euro. "Bail-out package depends on stable dinar" National Bank of Serbia Governor Radovan Jelasic said that he could not promise citizens that the dinar’s exchange rate would not hit the 100 mark. He reiterated that the exchange rate reflected market trends and what was going on in Serbia and the world. “It is obvious that the state needs to increase the influx of foreign funds this year because it is not possible to expect a large number of foreign investments. We need to pull in as many of the already approved credits as possible,” economist Jurij Bajec said. “Funds from the sale of NIS will have a short-term effect, but they will be spent too, which means that much more significant funds are needed,” he said. He aded that the credit approved by the International Monetary Fund for Serbia was small and that some EUR 3-4bn was needed in order for the NBS to maintain its foreign currency reserves above the permitted minimum.

"Bail-out package depends on stable dinar"

National Bank of Serbia Governor Radovan Jelašić said that he could not promise citizens that the dinar’s exchange rate would not hit the 100 mark.

He reiterated that the exchange rate reflected market trends and what was going on in Serbia and the world.

“It is obvious that the state needs to increase the influx of foreign funds this year because it is not possible to expect a large number of foreign investments. We need to pull in as many of the already approved credits as possible,” economist Jurij Bajec said.

“Funds from the sale of NIS will have a short-term effect, but they will be spent too, which means that much more significant funds are needed,” he said.

He aded that the credit approved by the International Monetary Fund for Serbia was small and that some EUR 3-4bn was needed in order for the NBS to maintain its foreign currency reserves above the permitted minimum.