Governor of the National Bank of Serbia (NBS) Jorgovanka Tabaković stated on Tuesday that the inflation rate in Serbia would total 12% by the end of the year.
It will peak in the third quarter of 2013, after which it should return to the target limits around the middle of the year, she stated.
During the presentation of the White Book issued by the Foreign Investors Council, Tabaković underscored that granting inter-loans between companies as a necessity because of the non-payment of dues and the lack of financial discipline constitute important inflation generators which NBS cannot affect.
She specified that powerful monopoly structures in Serbia’s economy are imposing long maturity deadlines and expressed the expectation that the government will regulate this sector through the laws it announced.
According to Tabaković, when the exchange between companies is carried out without tangible funds, the effects of monetary policy are reduced which is why government measures for imposing limits on the maturity dates should make it possible for the exchange to be carried out by means of money so that NBS measures could be efficient.
Tabaković said that foreign investors should not overrate the powers of NBS because the central bank cannot do anything on its own, but she also noted that they should not underestimate its capabilities either because NBS is willing to cooperate with investors to the best interests of citizens.
Tabaković also noted today that the central bank would not allow major fluctuations in the exchange rate and sharp changes in the value of the dinar.
The governor said that the exchange rate has recently stabilized as a result of restrictive monetary policy and subsidized business loans, measures regulating banks’ required reserves, monitoring the flow of money and dosing liquidity.
All those trying to find a crack in the collaboration inside the NBS team and create noise between the central bank and the government are wasting their energy, said Tabaković, adding that the NBS thoroughly analyzes cash flow in order to ascertain the real need for liquidity in the market and leave no room for creating excess liquidity for speculative purposes.
Noting that she is aware banks are for-profit organizations, she said it was time for everyone to turn to financing real production, as it is the only thing which guarantees development.
Source B92
