Highlights of the Month

Serbia’s Credit Rating Upgraded

On June 17 2016, Fitch Ratings announced that it has revised Serbia's Outlook to Stable and upgraded its Long-term foreign and local currency Issuer Default Ratings (IDR) at from 'B+' to ‘BB-‘.

The main reasons, above all, were better macroeconomic performances, political stability, banking sector stability and the government’s full commitment to reforms envisaged by the three-year precautionary stand-by arrangement with the IMF.

For more information, please see HERE.


Official visit of Mr. Xi Jinping, President of People’s Republic of China to Serbia

After more than 30 years, Serbia welcomed President of People’s Republic of China on a three-day visit (June 17-19). During the visit both countries demonstrated a sincere and strong friendship, which indicates good trends and limitless development potentials.

The delegations of the Republic of Serbia and the People’s Republic of China signed total of 22 cooperation agreements, over the fields of economy, construction, infrastructure, telecommunications, trade, defense, media, finance, etc.

For more information, please see HERE.


IMF satisfied with the Serbia’s economic reform

As planned, IMF mission visited Belgrade during June 9–21, to hold discussions on the fourth and fifth reviews under Serbia’s precautionary Stand-By Arrangement.

Based on the statement published on the June 21, IMF stated that strong performance under Serbia’s economic program continues, and economic growth is strengthening, supported by robust investment and rising net exports:

“The authorities have continued to make important progress in fiscal consolidation. The strong fiscal performance of 2015 continues in 2016, and all quantitative performance targets under the program for end-March were met, most by comfortable margins. The financial sector reform agenda is progressing well, and will contribute to more vibrant economic activity via improved financial stability and intermediation.”

The main remaining challenges are insuring of a durable fiscal improvement and put Serbia on a higher medium-term growth path, as a continuing reform of state-owned enterprises.


Hesteel officially took over Zelezara Smederevo

On July 1, Chinese company Hesteel, officially took over Serbian Zelezara Smederevo. Earlier this year, on April 18, the Government of Serbia signed the agreement on the sale of Zelezara Smederevo for EUR 46 million.

Hesteel plans to invest EUR 300 million in Zelezara, to reach the maximum production of 2.1 million tons and to keep all 5,050 employees.

For more information, please see HERE.