The Association of Banks and NALED in 2020 expect that the preservation of stability will enable further economic growth and continued reform of the business environment, and digitization will give a positive impuls.
NALED Executive Director Violeta Jovanovic tells Tanjug that the priorities are work on resolving property issues, further reducing workload and more flexible employment, curbing the informal economy and developing e-government through e-agrar.
“In order for any of the priorities to be implemented, there is a need for ongoing public-private dialogue through which we come to a solution that we advocate in public and, if accepted, support us to implement them”, she said.
NALED will continue to reform the cadastre and introduce the e-space system in 2020, participate in solving the issue of conversion of land rights and through solving the issue of delivery by digitizing the cadastre.
In the fight against the gray economy, activities will be continued towards the establishment of a single citizen contact center for inspections, while an e-agrar system will create a platform for electronic registration of farms and subsidy systems through the establishment of an electronic mailbox.
“Some of the reforms that we are planning have begun and if the elections fail us seriously we hope that 2020 will be reformly successful in the business environment”, said Violeta Jovanovic.
In a statement to Tanjug, Secretary General of the Association of Serbian Banks Vladimir Vasic says he is convinced that the achieved macroeconomic stability will continue in 2020, adding that the banking sector, as well as citizens and economy, can only profit from it.
“I am sure that next year GDP growth of 4.5 percent will influence further expansion of lending activity”, Vasic says.
He pointed out the importance of digitization, as it can be a step that will help Serbia jump a few steps and estimates that digitization will mark next year.
“GDP growth is driving wages and pensions, it is an opportunity for additional borrowing, and the growth in the number of employees is an opportunity for these citizens to enter the system, get a loan or what they want, and I think that is why the banking sector expects a significant shift in 2020”, says Vasic for Tanjug.
There are 26 banks in Serbia today and this sector expects further consolidation, which is part of global trends, he estimates.
He adds that 2019 was a success for banks and that the upswing in the sector was influenced by GDP growth while the slowdown in household lending was amortized by employment growth.
“The further fall in the rate of non-performing loans in Serbia is a consequence of lending activities and a better economic situation in which people and the economy are able to better meet their obligations, and we appreciate that in 2020 that percentage will continue to fall”, Vasic says.
Considering the opportunities in the environment, he believes that now is an ideal opportunity for anyone with a good idea or product to seek bank support because interest rates have never been lower.
Public dilemmas about the need for privatization of Commercial Bank, Vladimir Vasic comments from an economic point of view, emphasizing that the bank is systemic with more than 10 percent market share, regionally present, and with management that has successfully managed a profit of 70 million euros.
“Certainly, the shareholders will decide what is best for them, depending on the offer, not only the price but also some other things that are very important in privatization”, he says, adding that the state as the largest shareholder will make the right decision.
