D&B confirms Serbia's country rating at DB4d.

By bne IntelliNews February 8, 2011
Business information provider Dun&Bradstreet (D&B) has confirmed Serbia's country rating at DB4d in its February report, emportal.rs reported. As recalled, the DB4d rating corresponds to moderate risk of doing business. In its latest report, D&B claimed that the new arrangement between Serbia and the IMF would ensure financial discipline and boost investors confidence in the economy. D&B also said that Serbias economic activity accelerated last year, mostly due to expansion in the financial intermediation, transport, and trade and hospitality sectors. The economy preformed better than expected in Q1-Q3 2010, but economic activity slowed down in the final quarter on the back of moderation in foreign demand and exports which were the key growth drivers during 2010. At the same time, domestic demand remained suppressed due to low wages, deterioration in the labor market, stricter terms for loan approval and restrictive monetary policy, D&B said. The credit information provider noted that so far the central bank has failed to restrain inflationary pressures and curb exchange rate volatility, which is still significant despite key rate hikes and market interventions. D&B noted that the outlook on the dinar was still uncertain. D&B said that the government is considering signing a precautionary deal with the IMF after the expiry of the current SBA in April. Intellinews comment : We note that the IMF mission is due to arrive to Belgrade this week, while talks under the seventh and last review of the SBA with Serbia are due to kick off on Feb 14.

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