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Economic Policy
The state acts as a market participant, realising the said role through the implementation of economic policy measures. The holders of economic policy are state institutions, whereas the basic types of economic policy are: fiscal, monetary, international trade and public debt policy.
 
The fiscal policy is implemented by the Government of the Republic of Serbia, i.e. the Ministry of Finance. Fiscal policy aims at management of public revenues and public expenditures at the state level, with the aim of achieving their balance. The fiscal policy may be expansive and restrictive, depending on whether fiscal rates are being decreased and public consumption increased or interest rates increased and the public consumption decreased. The Republic of Serbia is leading an expansive policy, having low tax rates (the VAT rate is amongst the lowest in Europe, general VAT rate amounting to 20% and special VAT rate amounting to 8%) and increased public consumption (social benefits and subsidies).
 
The monetary policy of the state is led by the National Bank of Serbia, being the central bank. The monetary policy is implemented through the measures relating to the management of interest rates, money supply and intervention on foreign- exchange market, having as the basic objective stability of prices. The monetary policy may be expansive and restrictive, depending on whether the money supply is increased or interest rates are decreased. The National Bank of Serbia leads restrictive monetary policy, with the projected inflation for the year 2017 amounting to 3.0 +/- 1.5%. The exchange rate regime is a managed float regime, i.e. it is formed on the basis of demand and offer in terms of currencies, with the National Bank having the right to intervene on the foreign-exchange market so as to prevent high daily fluctuations.      
 
The Republic of Serbia is dependent on international trade, primarily owing to deficiencies of natural energy resources (oil and natural gas), and impossibility to settle domestic demand by domestic debt. Owing to this, there is a high foreign trade deficit, decreasing in recent years. Serbia is the Member of Central European Free Trade Agreement (CEFTA), realizing a positive foreign trade balance. Trade agreements signed with the European Union, Russian Federation and Turkey are especially important for Serbia. The customs policy of Serbia is getting less important, owing to the fact that the country strives to the membership in the European Union. EU Member States are the main foreign trade partners to Serbia, implying that customs duties have to be decreased owing to the implementation of the Trade Agreement. Endeavouring to obtain a full-fledged membership in the World Trade Organization imposes similar obligations to Serbia. International trade of the Republic of Serbia is becoming increasingly important also owing to the implementation of the new model of economic growth and development, which is based on the increase of exports (export oriented growth model).  
 
The public debt policy is within the competence of the Ministry of Finance, i.e. the Public Debt Administration, being a separate administrative authority. The borrowing is executed through the issuance of state securities and contracting loan agreements both in the domestic and the foreign market. Financial resources collected in this manner may be used for covering budget deficit, financing infrastructural projects, debt servicing, procurement of assets etc. The institution competent for public debt policy is obliged to execute its duties in accordance with the situation in the market (interest rates, exchange rate, projections) in the most optimum way possible.       
 
 
Presentation for Investors
Investor relations
Public Debt Management Strategy
Monthly Report PDA
Monthly Update for Investors
Media
Links
Yield rates of the Government securities
Issued Eurobonds Overview
Public Debt Dynamics
 
 

Ministry of Finance of the Republic of Serbia - Public Debt Administration
Pop Lukina 7-9, Belgrade
Tel : + 381 11 3202 461 ; Fax: +381 11 2629 055
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