Introduction to SERBIA Serbia is a market economy but the public sector remains highly influential in certain areas and a number of institutional reforms are required. The economy relies on manufacturing and exports, driven largely by foreign investment. The political situation is stable, and Prime Minister Vucic renewed his political majority in recent parliamentary elections. Serbia has made some progress towards EU membership, but the government objective to become a full member by 2020 seems overly optimistic for the time being. Structural economic reforms largely stalled during the 2009 global financial crisis. An agreement was reached with the IMF in 2015, and some reforms are underway. Privatisation of numerous and ailing state-owned enterprises and the reform of the pension system are amongst the most urgent tasks. Recurrent budget deficits are contributing to growing concerns about debt sustainability as Serbia's total public debt as a share of GDP doubled from 35% in 2008 to 74% in 2016 (of which on third is in USD). In the medium term, socio-political constraints will continue to put a limit on the pace of reforms. The economy experienced a recovery in 2016 (2.8%) that should be confirmed in 2017 thanks to exports and domestic demand. A large part of the economy is euro-based (75% of corporate credits). The SRD is likely to continue to depreciate moderately. Summary BNP Paribas presence BNP Paribas has a strong presence in central and eastern Europe with a comprehensive service offering for both Serbian corporations operating overseas and foreign corporations doing business in Serbia. Please contact your BNP Paribas Relationship Manager for more information. Working with BNP Paribas BNP Paribas has a strong presence in central and eastern Europe with a comprehensive service offering for both Serbian corporations operating overseas and foreign corporations doing business in Serbia. Please contact your BNP Paribas Relationship Manager for more information. Currency Currency Serbian dinar (RSD). Bank accounts Resident / non-resident status A company is considered resident in Serbia if it is registered in, or its place of effective management is located in the country.
Bank accounts for resident entities Within Serbia Outside Serbia Local Currency Not permitted Foreign Currency Permitted, usually subject to NBS approval, not convertible Bank accounts for non-resident entities Within Serbia Outside Serbia Local Currency Permitted, in special circumstances, convertible Foreign Currency Not applicable Payments & Collections Credit transfers Credit transfers are used by companies to pay salaries and suppliers. Credit transfers are available as both paper-based and electronic payment instruments. High-value and urgent RSD-denominated credit transfers can be settled in real time via the RTGS system. Low-value (RSD 300,000 or below) RSD-denominated credit transfers can be settled on a same-day basis via the Clearing System. Direct debits Direct debits are used for regular payments, such as utility bills. Direct debits are settled on a same-day or next-day basis via the Interbank Clearing System for Direct Debits. Liquidity management Domestic: notional pooling Domestic notional cash pools are available but only for domestic currency accounts within the same legal entity.
Domestic: cash concentration Single-currency domestic cash concentration structures are available in the form of zero-balancing accounts within the same legal entity. Cross-border notional pooling Cross-border notional cash pools are not available. Cross-border cash concentration Cross-border cash concentration is not available. International trade General trade rules As a member of the Central European Free Trade Agreement (CEFTA), Serbia has reduced and eliminated trade barriers and tariffs with its fellow CEFTA members (Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova and Montenegro). As a negotiating candidate country for joining the European Union (EU), Serbia has begun official accession talks and, upon joining, will implement the EU customs code. Imports / exports Imports Machinery and transport equipment Fuels and lubricants Manufactures Chemicals Food and live animals Raw materials Primary Import sources Germany (12.4%) Italy (10.6%) Russia (9.6%) China (8.5%) Hungary (4.8%) Poland (4.2%) Exports Iron and steel Rubber Clothes Wheat Fruit and vegetables Non-ferrous metals Electric appliances Export markets Italy (16.2%) Germany (12.6%) Bosnia and Herzegovina (8.7%) Romania (5.6%) Russia (5.4%) Metal products Import / export volumes Exports - goods m USD 2011 2012 2013 2014 2015 2016 11,303 10,761 13,976 14,137 12,597 14,852 Weapons and ammunition Automobiles
- services USD m 4,211 3,972 4,550 5,043 4,470 5,056 18,931 18,017 19,504 19,585 17,026 19,230 - services USD m 4,000 3,828 4,131 4,433 3,936 4,034 Current account as % GDP 10.9 11.6 6.1 6.0 4.0 4.0 Imports - goods m USD Source: IMF, International Financial Statistics and National Statistics of Serbia, September 2017. Market data updated as of 01/08/2017