flat and enable enterprises to purchase new equipment. everybody does well if the saving and credit scheme runs smoothly. 2. economic growth by 3. 5 % in 2009 is very challenging indeed! lower economic growth implies lower income, and in case of no decline in spending, a higher than currently planned growth of 1¾ % in consolidated budget deficit will automatically follow! hence, it is of utmost importance that we design a set of measures to be implemented in case economic growth turns out to be lower than planned for the period ahead. 3. proving that serbia is different than other countries in the region. serbia was the first country in the region to seek financial arrangement with the imf as a precautionary measure. this proves that we are a responsible state and wish to implement transparent economic policy under the imf umbrella. this is certainly a point in our favour and will prove useful in serbia ’ s attempts to remain an attractive foreign investment destination in the near future of extremely cautious capital spending and restrictions on investments. thank you for your attention!

radovan jelasic : serbia against the economic crisis speech by mr radovan jelasic, governor of the national bank of serbia, in a meeting of top officials and leading businessmen themed “ serbia against the economic crisis ”, belgrade, 9 january 2009. * * * your excellencies, ministers, ladies and gentlemen, i am grateful for the invitation to attend this meeting and hope it will, if not resolve, then at least contribute to improved understanding of both current events and possible responses to the challenges our economy and the overall serbian society are now facing. allow me to begin by emphasizing the following four items of concern : 1. the level of disruption in international economic relations is unprecedented since ww2. there is no institution, no scenario or study which offers a ready made solution to the current crisis. 2. nobody, and absolutely nobody, can tell how long the crisis will last nor how deep the disruptions will cut into the tissue of the world economy. this fact should be born in mind by all decision makers when deciding on any measures, either those relating to the use of foreign reserves or measures involving changes in the exchange rate for the dinar! 3. to err is human, especially when the problem at hand and the urgency of quick response are so paramount. but it is also of ultimate importance to admit one ’ s mistake and to adopt corrective measures as the market is quicker than ever in dealing punishing blows for any mistake! 4. of course, we need to face up to the reality, the reality which in serbia is most commonly termed “ harsh ”. this time, though, this attribute is more than applicable, but should not be used as an excuse for us not to confront the reality. both the exchange rate of the dinar against the euro and the current movements in prices are the “ blueprint ” of economic and political reality in serbia and beyond. naturally, we may blame most of such problems on the movements abroad, but i hope we all agree on one point at least – movements in prices and the exchange rate depend heavily on the type of measures we undertake in response to internal and external challenges. and the challenges have never been so numerous! what with the recent gas crisis and its fallout on both prices and the exchange rate in serbia! out of the blue, we are hit by rising prices of coal and wood for heating and there are no electricity heaters in the market even if your life depended on it. that is what constitutes