nbs speech, 2006-10-18
Those who wonder why interest rate margins range between 4 and 7 percentage points in a majority of transition countries, and between 4 to 5% in EU countries, i.e. why they are lower than in Serbia, ought to have in mind the following facts: 1) our country rating is still BB-, almost exclusively because of high political risk, 2) until only few months ago, we had double-digit annual inflation, 3) a large part of the corporate sector is still waiting to be restructured, with monopolies maintained or created in several branches of economy!
Sentiment: neutral
Topic: mp_inflation