The Serbian government deposits held at the central bank (NBS) shrank 3% m/m to RSD 175bn (EUR 1.52bn) at end-June, for a fourth straight month, after contracting 13% m/m in May, central bank data showed. Subdued current spending prior to the 2013 budget rebalance endorsed in early July resulted in a record low budget deficit of RSD 4mn in June and likely helped curb the monthly decline.
However, the negative trend will likely sustain in the coming months, as investor appetite for Serbia’s government securities remains weak reflecting both internal and external factors. In July, the country borrowed the equivalent of EUR 144mn on the local market, just 58.8% of the monthly plan.
In annual terms, state deposits climbed 75% y/y lifted by Serbia’s three Eurobond issues since September 2012 worth a combined USD 3.3bn. The government deposits at the NBS equalled 4.6% of the full-year projected GDP at end-June, down from 4.7% of GDP the month before but up from 3.0% of GDP a year earlier, according to IntelliNews calculations.
Foreign currency deposits calculated in dinars reached RSD 104bn at end-June, down 6% m/m but up 90% y/y. They accounted for 60% in total state deposits. June’s dinar state deposits rose 56% y/y and 1.7% m/m to RSD 70bn.
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Orban’s new illiberal axis
Amid the furore over Hungarian Prime Minister Viktor Orban’s visit to Tbilisi immediately after the allegedly stolen October 26 general election, a visit by the country’s President Tamas ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
22 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago