TABAKOVIC: Serbia leaves peak public debt behind

(Photo: YouTube/screenshot)

- I am convinced that we have left the peak public debt behind. But I don't like talking about this in the middle of the year... NBS will continue to contribute modestly to the maintenance of the stability – she said for TV B92.

Tabakovic added that NBS intervened two days before the outcome of the British referendum in order to maintain market stability.

- I believe that the citizens who check the exchange rates first thing in the morning already know that the crisis, if I may call it that, which didn't last for long, has been overcome. NBS was maintaining the stability before the outcome of the British referendum – she said.

The governor reminded that NBS intervened in the two days preceding the referendum by selling EUR 15 million each day.

Tabakovic assessed that the danger to Serbia arising from Brexit hadn't been so significant, because its bond with Great Britain regarding foreign trade exchange wasn't so strong.

- On the morning of that day, I reacted out of precaution, not wanting the psychology of the market to reach fever pitch – she said.

- We can't underestimate Brexit's influence on the total financial infrastructure, because, if anything proves that each of the states has lost its sovereignty in the domain of economics, it's the information and money, which, as global phenomena, tend to impact each and every market like a weather disaster – the governor added.

According to her, there's no room for concern in Serbia, nor should any additional measures be expected, since the measure taken by NBS in the previous period contributed to the financial stability, the prerequisite of which is the political stability.

In explaining why the citizens aren't seeing the changes for the better immediately, even though the exchange rate and prices are stable, Tabakovic said that no serious solution could lead to instant results.

- Changes for the better can be seen, for example, in lower expenses for taking out loans in dinars, because the interest rates have gone down by ten percent. This is one of the solid proofs – Tabakovic said.

When asked if she had any advice for Swiss franc debtors, Tabakovic said:

- I have to say that the interest rate has been lowered for Swiss francs, but that it is probably too high for citizens who must get into debt.