After latest meausures of NBS, commercial banks in Serbia to use euro as financing source

- The banks in Serbia are not going to increase the interest rates on the credits issued in dinars, but, due to the latest measures of the National Bank of Serbia (NBS), some of them will, once again, turn to euro as the source of financing - the representatives of certain banks estimated.

The marketing manager of HVB bank, Raško Tomašević, stated that, following the decision of NBS that the dinar mandatory reserve for deposits be increased from 18 to 60%, that bank would again turn to foreign currency credits. According to his words, the credits in dinars have, so far, been cheaper because of low mandatory reserve rate and lower interest rates, but, due to the latest measures passed by NBS, Tomašević says that, most probably, 99% of banks in Serbia will neglect dinar as a financing source .

The executive manager of Societe Generale bank, Vladan Manić, said that that bank saw the latest measures of NBS as some kind of appeal to all participants in the domestic financial market to join the inflation taming campaign.

He stated that NBS' measures would both make the dinar credits more expensive and destimulate the foreigners to keep their deposits in Serbian national currency.