european countries and the only non - eu country to have issued a green eurobond. the issued bond was worth eur 1 bn, with a maturity of seven years, at the lowest coupon rate of 1. 0 %. such a low rate is owed to strong demand of international investors who assess that serbia has excellent growth prospects. the issuance was aligned with the green bond principles of the international capital market association, with a clear obligation to use the funds exclusively for projects in the areas of renewable energy, energy efficiency, transport, water management, pollution prevention and control, circular economy, biodiversity and environmental protection, and sustainable agriculture. 2 / 4 bis - central bankers'speeches furthermore, in respect of fx reserve management, the nbs also has green bonds of high - ranking prime international issuers in its portfolio, thereby also supporting the green transformation. in addition, as a regulator and supervisor, we have conducted a survey among banks in serbia on how climate - related risks affect their operations and what are the activities they undertake in this regard. the preliminary conclusions of the survey indicate that : 1. the banking sector began to recognise climate risks in the context of the risk management system, and half of them defined the concept of that risk in their internal acts ; 2. more than half of banks expect a significant impact of climate risks on the bank's risk profile in the coming period, with the majority expecting that impact in a period longer than five years ; 3. a majority of banks have not yet included these risks in the scope of the bank's management bodies, nor in the system of reporting on risks ; 4. half of banks did not define any limits or restrictions arising from climate risks. other banks have mostly done this by defining exposure limits in the form of a target maximum value that needs to be reached by a certain date, or activity restrictions by defining a list of activities that are not supported. moreover, as an institution responsible for the financial system stability, we have been implementing advanced macroprudential stress tests of the banking sector's solvency and liquidity for a long time. as an additional step forward, within the new regional ipa project, we will work together with central banks from the european system of central banks to include various macro scenarios of the impact of climate risks in the existing framework. also, as part of cooperation, since july 2021 we are a member of the network for greening the financial system. this year, shortly after its founding, we joined

20 % ( the average between 2007 and 2009 ). for simplicity we also assume a full roll - over of the existing stocks. with declining inflation along the targets, this implies rising real rates of fx credit growth. the government are also key conditions for success. for instance, government policies in the past had sometimes prioritized euro over dinar, not really providing a good example to the public. subsidies extended to fx - based financial products until last year is yet another example. also, a vast majority of government debt is in foreign currency, making fiscal policy exposed to fx risks. some public companies continue to make fx deposits and take fx loans regardless of the nature of their hedging needs. fortunately, the situation is changing rapidly and the government started actively to prioritize the use of dinars. the dinarization strategy we have in mind has three interconnected pillars. although activities in each pillar can be pursued independently, the progress is mutually reinforcing. however, careful coordination is needed to minimize potential adverse effects on other economic activities. the first pillar is the most general but also the most important. it calls for strengthening the macroeconomic environment by delivering low and stable inflation through a flexible exchange rate, alongside durable economic growth and stable financial system. 5 understandably, the nbs should continue and further reinforce its flexible exchange rate it policies under this pillar. similarly, we should be strengthening our capacity to provide for stability in financial markets. structural reforms in the real economy and sustainable fiscal policies delivering long - term growth are equally important. although they rest outside of the monetary policy control, the nbs will support the government efforts in this area. we should also bear in mind that the real success in this pillar will come only over a long period, requiring prolonged efforts. we are positive that targeted measures, subsidies and campaigns will increase short - term dinar savings and loans. however, a sustained period of macroeconomic stability will be needed before the trust in dinar as a means of storing wealth is re - established. the second pillar in our dinarization strategy should consist of measures creating favorable conditions for the development of the dinar bond market. the measures should facilitate expansion of the dinar credit activity of banks through promoting dinar denominated instruments and markets. development of an actively traded dinar yield curve is an important milestone of this pillar. in this sense, much activity is already taking place. several commercial banks have started programs offering longer - term dinar credits under both flexible and