Serb govt deposits at c-bank shrink 3% m/m to EUR 1.5bn at end-Jun 2013

By bne IntelliNews July 26, 2013

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

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