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The Serbian economy has been growing strongly in recent years. But Serbia’s transition to a market economy started much later than other countries in the region, after a lost decade of the 1990s. Overall, the business environment is much improved but there are significant barriers to doing business, including corruption. The privatisation programme has advanced well, particularly in the banking sector.
Key challenges in Serbia are to accelerate the privatisation and restructuring programme for medium and large companies. There is also a need to implement new laws to promote enterprise performance, develop the financial sector and enhance the role of the private sector in critical infrastructure sectors such as roads, railways, energy, municipal infrastructure and telecommunications.
The EBRD and Serbia
The Bank’s strategic priorities will focus on the corporate and financial sectors and infrastructure.
In the corporate sector, the EBRD will provide financing for privatisation and post-privatisation restructuring to both local and foreign corporates.
In supporting the financial sector, it will assist banks with a strong presence looking for opportunities to develop new products.
And it will continue to play a crucial role, together with partner IFIs, in developing the transport, energy and municipal infrastructure in the country. The majority of future Bank investments (in terms of volume) are expected in the transport sector.
Last updated 21 April 2010