Serb govt deposits at c-bank rise 6.8% m/m to EUR 1.5bn at end-Oct 2013

By bne IntelliNews November 26, 2013

The Serbian government’s deposits held at the central bank (NBS) increased 6.8% m/m to RSD 176bn (EUR 1.5bn) at end-October after declining in monthly terms for two straight months, central bank data showed.

In annual terms, state deposits climbed 24.5% y/y lifted by Serbia’s two Eurobond issues since November 2012 worth a combined USD 2.3bn. The government deposits at the NBS equalled to 4.7% of the full-year GDP forecast at end-October, up from 4.2% of GDP a year ago, according to IntelliNews calculations.

Dinar state deposits rose 87.6% y/y and 20.3% m/m to RSD 94bn at end-October. Foreign currency deposits, calculated in dinars, shrank 10% y/y to RSD 82bn, marking an annual decline for the first time since January 2013. In monthly terms, FX government deposits declined 5% in October for a third straight month. They accounted for 47% of total state deposits.

The placement of USD 1bn of five-year Eurobonds on November 21 in order to finance Serbia's 2013 and 2014 budget spending guarantees for the Serb state a comfortable liquidity position in the coming period. Furthermore, the foreign investors' demand for Serb government securities has regained ground since October reflecting both external (ECB’s decision to cut its benchmark interest rate to 0.25% on Nov 7) and internal factors (falling inflation and budget austerity measures).

Related Articles

Russia keeps Serbia waiting for promised MIGs

Russia plans to deliver six used MIG 29 aircraft to Serbia by end-2017, Russia’s Federal Service for Military-Technical Cooperation (FSMTC) Director Dmitry Shugaev said on July 19, Sputnik ... more

Fiat workers end 3-week strike that halted production at Serbia's top exporter

Production at the Fiat Chrysler Automobiles (FCA) Srbija factory in Kragujevac will restart on July 19 after workers and Prime Minister Ana Brnabic agreed on the evening of July 18 to end ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss