REPUBLIC OF SERBIA - pda.gov.rs · Serbia at a Glance Key Facts Resilient economy on the path to full integration with Europe Form of Government: Parliamentary Republic Territory:

Ministry of Finance

INVESTOR PRESENTATION AUGUST 2018

REPUBLIC OF SERBIA

1. Republic of Serbia – Overview

4. Fiscal Policy and Debt Management Strategy

3. Banking Sector

2. Macroeconomic Background

Serbia at a Glance

Key Facts

Resilient economy on the path to full integration with Europe

Form of Government: Parliamentary Republic

Territory: 88,361 sq. km

Capital: Belgrade

Population: 7.0 million(1,2)

GDP per capita: EUR 5.386 (1,2)

Nominal GDP: EUR 37.7bn (1,2,3)

Credit ratings: BB/BB/Ba3

Currency: Serbian Dinar (RSD)

Current exchange rate: EUR/RSD = 118.0705 (3)

USD/RSD = 102.1813(3)

Vilnius

EU Non-EU

SERBIA

Nis

Kragujevac

Novi Sad

Belgrade

1 National Statistics Office as of 2017, Minstry of finance as of 2017, 2 Excluding Kosovo and Metohija, 3 NBS as of 23 August 2018

Recent Milestones and Progress to EU accession

20082006 2009 20112012

EU candidate

status awarded

3

Jan

2014

Dec

2015

Serbia opened

chapters 32 and 35

in the process of

EU accession

July

2016

Serbia opened

chapters 23 and 24 in

the process of EU

accession

Dec

2016

Serbia opened

chapters 5 and 25

in the process of

EU accession

Feb

2017June

2017

Serbia opened

chapters 20 and 26

in the process of EU

accession

Serbia opened

chapters 7 and 29 in

the process of EU

accession

Dec

2017

Serbia opened

chapters 6 and

30 in the

process of EU

accession

Serbia started EU

accession

negotiations

June

2018

Serbia opened

chapters 13 and 33

in the process of EU

accession

June-18 June-17 Change June-18 June-17 Change June-18 Change

Serbia BB BB- BB BB- Ba3

Bulgaria BBB- BB+ BBB BBB- Baa2 no change

Croatia BB+ BB+ no change BB+ BB+ no change Ba2 no change

Hungary BBB- BBB- no change BBB- BBB- no change Baa3 no change

Romania BBB- BBB- no change BBB- BBB- no change Baa3 no change

Latvia A- A- no change A- A- no change A3 no change

Lithuania A A- A- A- no change A3 no change

Serbia’s Rating In Comparative Perspective

Credit Rating History

Standard and Poor's – In June 2018, Standard and Poor's kept the credit rating of the Republic of Serbia at the level of BB, with the positive outlook for

improving the credit rating. According to the Standard and Poor's the Serbian economy is likely to expand in 2018-2019 with average rates of 3% or

higher, driven by stronger private sector consumption supported by expanding employment, wage growth, and a stable inflow of worker remittances. In

the light of macroeconomic stabilization and higher investor confidence, higher inflow of FDI is also expected to boost economic growth.

Fitch Ratings – In June 2018, Fitch Ratings has left unchanged the Republic of Serbia long- and short-term foreign and local currency sovereign credit

ratings at level 'BB'. The outlook is stable. Serbia's ratings are supported by strong governance, human development and ease of doing business

indicators, as well as a strengthened economic policy framework that has increased confidence that macroeconomic fundamentals have improved.

According to Fitch, Serbia is projected to grow by 3.5% in 2018 and 3.3% in 2019. Investment and household consumption, supported by positive

developments in the labour market, are expected to be the main drivers of growth for 2018-2019.

Moody's – In March 2017, Moody’s rating agency has upgraded Serbia’s credit rating to Ba3. The outlook has been revised to stable. Moody’s decision

to raise Serbia’s credit rating reflects primarily the successful implementation of the fiscal consolidation program and structural reforms, as well as

improved economic growth prospects, recovery in exports, the price stability and further opening of EU accession chapters.

4

1. Republic of Serbia – Overview


3. Banking Sector


Exports Have Been A Major Driver Of Economic Growth

Source: National Statistics Office, Ministry of Finance

Source: Eurostat

Real GDP Growth (Y-o-Y)

Real GDP Growth 2011 – 2017 (Y-o-Y)

• In 2016 and 2017 the Republic of Serbia marked 2.8% and 1.9% GDP

growth, respectively, while estimated growth for 2018 is 3.5%.

• GDP growth accelerated to 4.5% y-o-y in H1 2018, on the back of robust

investment activity - both private and government.

• In the first six months of 2018 exports of goods expressesd in EUR

increased by 7.6% in value terms over the corresponding 2017 period,

while imports of goods increased by 11.7%.

• Exports of reproduction products in H1 2018 had the leading 58.0% share

followed by consumer goods 31.3%, and equipment 10.7% share.

• In H1 2018 the export-import ratio was on the level of 76.3%, while in 2017

was 79.2%.

Source: National Statistics Office, National Bank of Serbia

Exports of Goods – Nominal Growth (Y-o-Y)

6

-4

-2

0

2

4

6

8

10

2012 2013 2014 2015 2016 2017*

Serbia

Romania

Bulgaria

Croatia

Hungary

*Preliminary Data

3.8%

26.0%

1.4%

7.8%

11.5%13.1%

7.6%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 Jun-18

33.4

31.7

34.3

33.3

32.9

34.137.7

1.4%

-1.0%

2.6%

-1.8% 0,7%

2.8%1.9%

-3%

-2%

-1%

0%

1%

2%

3%

4%

28

29

30

31

32

33

34

35

36

37

38

39

2011 2012 2013 2014 2015 2016 2017

GDP, EUR bn GDP growth rate

External Position

Exchange Rate USD/RSD (July 2017 – July 2018)Exchange rate EUR/RSD (July 2017 – July 2018)

Source: National Bank of Serbia

Source: National Bank of SerbiaSource: National Bank of Serbia

• At the end of July 2018 Serbia had a level of FX reserves at EUR

11.4bn (about 6 months of imports coverage) and net reserves at EUR

9.5bn which provide a good cushion for the Serbian external position

• At the end of March 2018 external debt stood at EUR 25.4bn, including

private sector external debt of EUR 11.7bn

• During 2016 and 2017 EUR/RSD exchange rate showed limited

volatility. In 2016 and 2017 the average exchange rate EUR/RSD was

123.1 and 121.3 respectively, while in the first seven months of 2018

the average exchange rate EUR/RSD was 118.3

Foreign Exchange Reserves (mln EUR)

7

10.9

11.2

9.9

10.4

11.4

9.0

9.5

10.0

10.5

11.0

11.5

12.0

2012 2013 2014 2015 Jul-18

110.0

112.0

114.0

116.0

118.0

120.0

122.0

124.0

126.0

85.0

88.0

91.0

94.0

97.0

100.0

103.0

106.0

109.0

112.0

115.0

118.0

121.0

Trade Balance

Balance of Payments (% of GDP)

Source: National Statistics Office, National Bank of SerbiaSource: National Statistics Office

Trade Deficit (% of GDP)


*Estimated

External Trade as (% of GDP)

• Current account deficit in 2017 reached 5.7% of GDP, due to imports

of capital and intermediate goods related to investment activity, as well

as due to supply-side shocks in energy sector and agriculture. In 2018

it is expected CAD share in GDP to remain on the same level as in

2017.

• In the medium term, it is expected the CAD deficit to be around 4-5%

of GDP and to be fully covered by the FDIs.

• During H1 2018 net FDI reached 6.9% of GDP (EUR 1.3bn; +8.6%

y/y). Inflows were mostly concentrated in export industries. CAD/FDI

coverage stands at 128.5% in H1 2018.

8

5.9

4.5 4.3 4.4 4.0

3.8

2.4

18.8%

13.0% 13.0% 13.3%11.6% 11.1% 13.2%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2012 2013 2014 2015 2016 2017 Jun-18

Trade deficit (EUR bn) Trade deficit (% of GDP)

-6.0%

-3.7% -3.1%-5.7%

-5.7%

3.7%5.4% 5.5% 6.6% 6.9%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2014 2015 2016 2017 2018*

Net FDI Current Account

32.1% 33.6%36.6%

39.4% 40.1% 42.6%45.1% 46.8%

49.8% 51.0% 51.2%55.8%

0%

10%

20%

30%

40%

50%

60%

2013 2014 2015 2016 2017 Jun-18

Export Import

Serbia’s Exports and Imports in Jan-June 2018

Import of Goods

Import of GoodsExport of Goods

Source: National Statistics OfficeSource: National Statistics Office

Export of Goods

Source: National Statistics Office

*Western Balkan countries + Moldova = parties to CEFTA

**Mediterranean countries in the Euro-Mediterranean Partnership


*Asia Pacific Economic Cooperation

**Commonwealth of Independent States

9

54%

13%

13%

20% EU

WBCs*

MEDA**

Other

50%

17%

8%

25% EU

APEC*

CIS**

Other

14%

13%

8%

6%

6%5%

47%

Italy

Germany

Bosnia and Herzegovina

Russian Federation

Romania

Montenegro

Others

15%

11%

9%

8%

6%4%

47%

Germany

Italy

China

Russian Federation

Hungary

Turkey, Republic of

Others

…And By Types Of Products


Export Jan-June 2018 (FOB) Import Jan-June 2018 (CIF)


External Trade as % GDP

• Serbia’s exports are reasonably diversified, covering the full range of

products from intermediate inputs, to consumer and capital goods

• This confirms that Serbia is already being integrated into the

European trade system and is able to export goods to multinational

companies operating in the global supply chain

• Intermediate and capital goods have been the fastest growing export

product categories in period 2011-2017, one of the positive results of

the direct foreign investment that Serbia has attracted in recent years

due to the Government of Serbia subsidy program


10

3%

40%

25%

5%

21%

6%

Energy

Intermediate goods

Capital goods

Durable consumer goods

Non durable consumer goods

Unclassified by MIG destination

10%

36%

22%

2%

15%

15%

Energy

Intermediate goods

Capital goods

Durable consumer goods

Non durable consumer goods

Unclassified by MIG destination

32.1% 33.6%36.6%

39.4% 40.1% 42.6%45.1% 46.8%

49.8% 51.0% 51.2%55.8%

0%

10%

20%

30%

40%

50%

60%

2013 2014 2015 2016 2017 Jun-18

Export Import

Foreign Direct Investments

Net FDI Diversification by Geography (Q1 2018)

Net FDI Diversification by Sector (Q1 2018)Net Foreign Direct Investment (EUR bn)

• NFDI’s in 2017 reached the level of EUR 2.4bn. The FDI/CAD

coverage for 2016 stood at 135.8%. The biggest FDIs were in

manufacturing sector (motor vehicles, base metals, rubber and

plastic, pharmaceuticals and chemicals), financial sector,

construction, retail trade sector, telecommunication and IT sector

• Estimated level of NFDI’s for 2018 is revised up and stands at EUR

2.6bn. FDI projection for the coming years also envisages full

coverage of CAD

• Serbia improved the position on the World Bank’s Doing Business

List 2018 and ranked at the 43rd position in comparison to previous

47th in 2017 (among the ten most improved countries)


Source: National Statistics Office; National Bank of Serbia


*2012 data affected by Telekom Srbija’s buyback of its Treasury shares from OTE (EUR 380m)

**Estimated

11

36.9%

23.3%

15.6%

9.1%

7.5%

1.8%

1.5%

4.3%

Manufacturing

Financial intermediation

Wholesale and retail trade

Construction

Real estate activities

Minning and quarring

Transportation and storage

Other

0.7

1.31.2

1.81.9

2.42.6

0

0.5

1

1.5

2

2.5

3

2012* 2013 2014 2015 2016 2017 2018**

118.2104.1

42.1 36.3 35.826.2 26.1 25.7 25.1 22.5 20.4

126

20.040.060.080.0

100.0120.0140.0

mil EUR

Inflation in the Target Band from the begining of 2018




• From the begining of the 2017 inflation has moved within the target

tolerance band, and it is expected to stay in the period ahead. Core

inflation (CPI excluding the prices of food, energy, alcohol and cigarettes)

broadly unchanged compared to the several past months and measuring

0.9% y-o-y in July 2018.

• During 2015, the NBS gradually reduced its key policy rate (KPR) by 350

bps and at the end of December 2015 KPR was at the level of 4.50%,

during 2016 NBS reduced KPR for additional 50 bps to the level of 4.00%

in July 2016, meanwhile in 2017 NBS reduced KPR for additional 50 bps

in September and October to the level of 3.50%. In 2018 NBS reduced

KPR to the level of 3.00%, in March and April 2018

• NBS reduced inflation target to the level of 3.00%±1.50% (starting from

January 2017)

Y-o-Y Inflation eop Key Policy Rate and Money Supply

Contribution of CPI Components to Y-o-Y Inflation (%)

12

-5

0

5

Services Energy

Industrial goods excluding food and energy Processed food

Unprocessed Food

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0% Key Policy Rate (left axis) M2 (YoY) (right axis)

7.0%

12.2%

2.2% 1.7% 1.5% 1.6%3.0%

2.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 2015 2016 2017 Jul-18

1. Republic of Serbia - Overview


3. Banking Sector


Banking Sector Overview


*latest available comparable data, Q4 2017


Asset Structure

Liabilities and Capital Structure

Consolidated Balance Sheet of the Banking Sector

14



*latest available comparable data, Q4 2017

57%

17%

13%

6%2%

5%

Loans and receivables fromclients

Financial assets available forsale

Currency and deposits withthe central bank

Loans and receivables frombanks and other financialorganisationsFixed assets

11%

66%

1%

12%

6%

3%

1%

Deposits to banks, OFO and thecentral bank

Deposits to other customers

Subordinated liabilities

Share capital and other capital

Reserves and unrealised losses

Profit

Other

Assets 2013 2014 2015 2016 2017 Jul-18

I. Foreign Assets 36.20% 35.20% 34.10% 33.10% 31.80% 32.95%

Of which NBS 32.80% 28.90% 29.30% 27.80% 26.90% 28.66%

II. Domestic credit 56.00% 56.90% 58.10% 58.50% 60.00% 59.16%

of which Government 8.60% 10.90% 12.40% 14.00% 14.00% 14.00%

of which Companies 25.70% 23.20% 22.90% 22.10% 22.30% 21.55%

of which Households 17.10% 17.30% 17.50% 18.40% 20.10% 20.61%

Others 4.60% 5.50% 5.30% 4.00% 3.60% 3.00%

III. Other Assets 7.80% 7.80% 7.80% 8.40% 8.20% 7.89%

Total Assets (EUR bn) 34.4 34.6 35.7 37.2 38.1 40.1

Liabilities 2013 2014 2015 2016 2017 Jul-18

I. Foreign Liabilities 14.70% 10.50% 9.10% 7.80% 8.60% 9.83%

II. Government depostis 7.30% 8.00% 7.30% 6.60% 7.40% 8.93%

III. Currency in circulation 3.10% 3.10% 3.20% 3.50% 3.20% 3.37%

IV. RSD deposits 10.80% 11.60% 13.00% 14.20% 15.00% 15.56%

V. FX deposits 29.70% 29.90% 29.90% 30.40% 31.40% 30.80%

VI. Other Liabilities 34.40% 37.00% 37.50% 37.50% 34.40% 31.51%

Total Liabilities (EUR bn) 34.4 34.6 35.7 37.2 38.1 40.1

A Strong Capital Cushion Offsets Relatively High NPLs




Credit Growth Y-o-Y

Capital Adequacy Ratio and NPL’s (%)

Banking Sector Ownership by Assets (2017)

15

• At the end of June 2018 CAR stands at high level of 22.9%

• NPLs are fully covered by balance sheet loan loss reserves. IFRS

provision (60.9% in June 2018) cover more than half of NPLs.

Among others, NBS regulatory measures allow the sale of NPLs to

non financial entities and better tax treatment on restructured debt

• The share of NPLs has a downward trend at end-June 2018 it stood

at 7.8%. The continuation of NPL resolution efforts by banks together

with the ecovery of credit activity, should further stimulate the

decrease in the share of NPLs

• Liquidity ratio of the banking system is higher than the regulatory limit

(2.1 in end-June 2018) and liquid assets represent 35.9% of total

assets at the end of June 2018

• The loan to deposit ratio that at the end of June 2018 amounted

93.2%, indicates stability of funding and in general the liquidity of the

banking sector.

21.4% 21.5% 21.6%

17.0%

11.9%

7.8%

20.9%20.0%

20.9%21.8% 22.5% 22.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2013 2014 2015 2016 2017 Jun-18

NPL's CAR

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%Loans to households

Loans to enterprises

Total loans

12.7%

27.5%

6.2%11.1%

19.4%

23.1% Austria

Italy

Greece

France

Other foreign banks

Domesticaly owned banks

1. Republic of Serbia - Overview


3. Banking Sector


Fiscal Policy Measures

Fiscal consolidation measures and structural changes for 2018:

– Reform of tax administration and public revenue system

– Reform of public enterprises

– Public administration reform and rightsizing

– Improvement of capital expenditure planning and realization

– Business environment improvement

• Eight successful IMF program reviews during period 2015 – 2017

• General Government budget surplus 1.2% GDP in 2017 and 0.4% GDP

in Q1 2018 Source: Ministry of Finance

Source: Ministry of Finance

* estimated


Consolidated Fiscal Balance (% of GDP)

Central Government Budget (RSD bn)Tax Revenues (as % of GDP)

17

-1.5%-1.9%

-2.6%

-4.4%-4.6% -4.8%

-6.8%

-5.5%

-6.6%

-3.7%

-1.3%

1.2%

-9.0%

-7.0%

-5.0%

-3.0%

-1.0%

1.0%

3.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2016 2017

Other tax revenues Duties Profit tax Personal income tax Excises VAT

788 812881

9481042

1119

1178

980 986

11281063 1037

1085

1206

-192 -174-247

-115

5 34

-28

-400

-200

0

200

400

600

800

1000

1200

1400

2012 2013 2014 2015 2016 2017* 2018*

Revenues Expenses Balance

The IMF completed the first review of Serbia’s economic performance under the SBA on June 26, 2015

– The economy has stabilized, inflationary pressures remained subdued, the external position has strenghtened and credit growth remained slow

The IMF completed the second review of Serbia’s economic performance under the SBA on October 23, 2015

– The economic growth has remained positive despite the significant fiscal tightening, the current account deficit has narrowed to a sustainable level,

confidence has improved and gradual easing of monetary policy by the NBS has been appropriate in view of still low inflation

The IMF completed the third review of Serbia’s economic performance under the SBA on December 18, 2015

– The economy has continued to recover on the back of efforts to strengthen public finances, address structural weaknesses and improve the business climate

The IMF completed the fourth and fifth reviews of Serbia’s economic performance under the SBA on August 31, 2016

– Serbia’s economic recovery has exceeded expectations, supported by efforts to strengthen public finances, advance structural reforms and boost investment

confidence, while authorities indicated their intention to continue treating the arrangement as precautionary

The IMF completed the sixth review of Serbia’s economic performance under the SBA on December 16 , 2016

– Serbia’s economy continues to strengthen, supported by the efforts to improve public finances and address structural weaknesses. Employment is rising,

inflation remains firmly under control, and public debt has started to decline. Significant progress has been made on fiscal consolidation, on account of strong

revenue and on-going expenditure control

The IMF completed the seventh review of Serbia’s economic performance under the SBA on August 30, 2017

– Serbia’s economy has strengthened with strong revenue performance, monetary policy has succeeded in keeping inflation under firm control, as well as

business environment has strengthened.

The IMF completed the eight and final review of Serbia’s economic performance under the SBA on December 20, 2018

– Serbia has made significant progress under the Fund-supported economic program. Confidence in the economy has improved, public debt is declining

rapidly, external position is robust, and investment and growth are stronger. Labor market conditions continue to improve. Significant progress has also been

made in implementing the structural reform agenda.

– During the arrangement that expired on February 22, 2018 the Republic of Serbia did not use the available funds.

Serbia Reiterates the Importance of Cooperation with the IMF

18

Completed first review of

Serbia’s Stand-By Arrangement

Completed second review of

Serbia’s Stand-By

Arrangement

20082006 2009 2011June 2015 Oct 2015 Dec 2015

Completed third review of

Serbia’s Stand-By

Arrangement

Completed fourth and fifth

reviews of Serbia’s Stand-By

Arrangement

Aug 2016 Dec 2016

Completed sixth review of

Serbia’s Stand-By

Arrangement

Aug 2017

Completed seventh review

of Serbia’s Stand-By

Arrangement

Dec 2018Completed eight

review of Serbia’s

Stand-By Arrangement

Active Debt Management Has Produced Stable Funding Base

Total foreign debt

59%

Total domestic debt

41%

Other

15%

IMF, 2%

IDA, 1%

Paris Club, 5%

IBRD, 9%

Other

1 %

T-bills and

T-bonds

38%

Frozen

FX bonds

2%

Guaranteed external debt

7%

Eurobond, 16%

EIB, 4%





Public Debt

Public Debt Service (RSD bn)

Description of the Debt Structure(As of 31 July 2018)

Development of the Currency Structure

19

2014.8 2309.0

2753.2 3018.6 3064.6 2751.12834.556.2% 59.6%

70.4%74.7% 71.9%

61.6%59.6%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

2012 2013 2014 2015 2016 2017 July-18

Public debt (in RSD bn)

Public debt (% of GDP)

20.3% 21.4% 22.2% 20.9% 23.0% 25.3%

45.9% 41.7% 39.8% 39.7% 41.6% 39.9%

27.7% 31.5% 32.9% 33.9% 29.5% 28.4%

4.6% 4.2% 3.9% 3.7% 3.4% 3.2%

1.5% 1.2% 1.2% 2.0% 2.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 Jul-18

Other SDR USD EUR RSD

3.2%

125 127 119 106

515 537 554453

0

100

200

300

400

500

600

700

800

2015 2016 2017 2018

Interest Principal(RSD bn)

Debt Mix and Currency Structure

Source: Ministry of Finance, as of 31 July 2018 Source: Ministry of Finance, as of 31 July 2018

Source: Ministry of Finance, as of 31 July 2018

*Internal Debt – All currencies Debt on the Domestic market

** External Debt – All currencies Debt on the International market

0,5% 2,7%

Source: Ministry of Finance, as of 31 July 2018

*Internal vs **External Debt

Interest Rate Mix

Currency Breakdown

Public Debt Residual Maturity Structure

20

58.7%

41.3%Total foreign debt

Total domestic debt

81.3%

18.7%

Fixed interest rate

Variable interest rate

25.3%

39.9%

28.4%

3.2%

RSD

EUR

USD

CHF

SDR

Others

6.9%

7.7%

12.6%

24.3%5.7%

13.8%

14.1%

5.9%

9.0%

Up to 6 months

Between 6 months and 1 year

Between 1 and 2 years






Over 20 years

Government Financing Needs 2018



• The improvement in fiscal position of the Government decreased the

level of gross financing needs in the last three years

• Total financing needs in 2018 are EUR 5.6bn of which EUR 1.5bn for

buy-back operations

• Financing plan for 2018:

√ EUR 3.5bn government securities domestic market, of which:

* EUR 2.0bn denominated in dinars

* EUR 1.0bn denominated in euros

* EUR 0.5bn denominated in dinars (buy-back operation)

√ EUR 1.0bn Eurobond (buy-back operation)

√ EUR 0.25bn IBRD

√ EUR 0.30bn Abu Dhabi Emirate concessional loan

√ EUR 0.55bn other sources (IFIs and bilateral loans)

• 5Y RSD and 10Y RSD benchmark size dinar bonds are issued in 2018

• Improved secondary market trading of government dinar securities due

to benchmark size issues

Maturity Distribution of Local Currency Government Securities (As of 31 July 2018)

Maturity Distribution of EUR Denominated Government Securities (As of 31 July 2018)

21

9%

31%

17%

29%

15% 2Y 3Y

5Y 7Y

10Y

5%12%

25%

31%

2%

17%

8%

53W

2Y

3Y

5Y

7Y

10Y

15Y

Government Securities – Domestic Market



22

RSD securities-domestic market (Jan-Aug 2018)

EUR securities-domestic market (Jan-Aug 2018) ATM of Government securities

RSD weighted average accepted rate on primary auctions



0

20

40

60

80

100

120

3M 6M 53W 2Y 3Y 5Y 7Y 10Y

RS

D B

illio

ns

Redemptions

New Issuance

-

50

100

150

200

250

300

53W 2Y 3Y 5Y 7Y 10Y

EU

R M

illio

ns

Redemptions

New Issuance 3.9

4.0

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

In y

ears

ATM RSD Securities

ATM EUR Securities

3.83% 4.14%

5.17%

2.64%

3.48%

4.56%4.83%

5.12%

2.78%

3.13%3.93%

4.78%

5.38%5.68% 5.83%

4.96% 4.42%

5.94%

7.06%

8.62%

6.50%7.35% 7.54%

8.49%9.21%

10.16%10.93%

11.99%12.99%

0

0.02

0.04

0.06

0.08

0.1

0.12

3М 6M 53Н 2Г 3Г 5Г 7Г 10Г2018 2017 2016 2015 2014

Documents

REPUBLIC OF SERBIA - pda.gov.rs · Serbia at a Glance Key Facts Resilient economy on the path to full integration with Europe Form of Government: Parliamentary Republic Territory: