##s, households and the government. economic growth in serbia is also supported by net foreign direct investments which came at eur 1. 8 billion, rising by 45. 6 % from a year earlier. the fact that, today, investments in serbia are channeled into a large number of projects, and that they originate from a larger number of countries, indicates that companies which decided to invest in serbia are sure that they have made a good business move. and here, we must not forget to mention domestic investors which we consider equally important and valuable. bis central bankers ’ speeches by achieving successful coordination of monetary and fiscal policies, while ensuring a clear division of powers among different institutions, we have strengthened our credibility with all relevant entities considering the prospect of investing in serbia. if i were to summarize the results achieved by our institution with regard to the overall investment climate in just one sentence, i would point out : low inflation rate, record low interest rates, anchored inflation expectations, relatively stable exchange rate, stable and resilient financial system, higher investment loans, increased confidence in the dinar coupled with higher household borrowing and savings in the local currency. that we are not the only ones who say this is confirmed by data and the assessment of credit agencies and relevant international institutions. we have also enjoyed excellent cooperation with the international monetary fund, providing maximum contribution to positive signals coming from that important institution, the arrangements with which lend major support to our economic stability. in particular, the national bank of serbia strongly supports the commitment of the serbian government to european integrations and has taken direct part in this process, not only through negotiations, but also through a series of other activities aimed at harmonizing regulations and creating a better and safer investment environment, following the lead of countries such as france. we are proud to say that all of the above has been achieved by relying on our own resources, bravely facing all challenges coming from the international environment and global financial flows. i therefore hope we will continue to enjoy your understanding and support, and will fully reciprocate it, to our mutual satisfaction. finally, allow me to add a few facts regarding french - serbian economic and cultural cooperation. the national bank of serbia has had intense cooperation with the bank of france, but also with the french agency for prudential supervision of financial institutions. the bank of france took part in the technical assistance project for strengthening the institutional capacities of the national bank of serbia, thereby continuing, in the best possible way, the cooperation

with regard to regulating and ensuring the stability of that part of our financial system. in addition, the national bank of serbia keeps making efforts to influence the business and investment environment in serbia in order for it to remain stimulative for maintaining current and attracting new foreign investment. according to the law that regulates the activities of the national bank of serbia, it is responsible for achieving and maintaining price stability, contributes to maintaining and strengthening the stability of the financial system and supports the pursuance of economic policy of the serbian government. the national bank of serbia has achieved the objective of price stability. inflation averaged at 1. 9 % in 2015 and we expect it to stay low in 2016. low and stable inflation, enjoyed by serbia today and for close to three years already, is imperative for preserving the real value of wages and pensions but also for creating a predictable business environment. because serbia is a small, open end euroised economy, the exchange rate represents an important factor of financial stability and certainty of doing business. larger oscillations of the exchange rate substantially hinder the maintenance of price and financial stability. all of us living and working in serbia, corporates and households with loans to repay, are well aware of this fact. hence, maintaining relative stability of the exchange rate is one of the important factors for strengthening the business and investment environment, contributing to higher investment and lower country risk premium. we have no dilemma over this and remain unwavering in our commitment to achieving stability in all respects – price stability, financial stability, and relative stability of the exchange rate. with regard to the exchange rate, we achieve stability by preventing excessive short - term oscillations in the foreign exchange market. foreign investors in particular have been highly appreciative of our results in this respect, pointing out that this parameter is of great significance for their business. and that is why i am proudly emphasizing this particular aspect today. also, by continuously trimming the key policy rate from may 2013 onwards, we have created room for a recovery in lending and further economic growth. the fall in interest rates was indeed one of the factors behind acceleration of economic growth. today, interest rates on dinar loans of corporates, households and the government are at their all - time lows since the adoption of the inflation targeting regime. interest rates declined by as much as up to 5 percentage points in 2015 relative to the previous year. the numbers speak for themselves – we have achieved a huge reduction in costs for corporate