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FDI into Serbia rises 14% y/y in H1

Author Radomir Ralev
FDI into Serbia rises 14% y/y in H1 Cadez with Serbian prime minister Ana Brnabic; Source: Serbian Chamber of Commerce

BELGRADE (Serbia), July 22 (SeeNews) – The inflow of foreign direct investment (FDI) into Serbia rose 14% on the year in the first half of 2019, the president of Serbia's Chamber of Commerce, Marko Cadez, said on Monday.

The issue of a Eurobond on the international financial markets by the Serbian government in June represents an additional stimulus to investments, as it will allow banks to lend money cheaper and facilitate access to financing, Cadez said in a video file posted on the website of public broadcaster RTS.

On June 19, Serbia issued 1 billion euro ($1.1 billion) of ten-year Treasury notes, to be listed on the London Stock Exchange (LSE). The transaction represents the first Serbian euro-denominated government securities issue on the international capital market. The proceeds will be used to finance the early redemption of $1.1 billion of US dollar-denominated Eurobonds.

In May, Serbia's central bank governor Jorgovanka Tabakovic said the net inflow of foreign direct investment (FDI) into Serbia rose 14% on the year in the first four months of 2019 to 1.2 billion euro. "The attractiveness of investing in the Serbian economy is the result of the improved business environment, the favourable financial conditions, and the implementation of infrastructure projects," Tabakovic said back then.

In 2018, net inflow of FDI into Serbia rose to 3.2 billion euro from 2.415 billion euro in the previous year, according to central bank data. Net FDI in the manufacturing industry accounted for 28% of the total, with 61% of coming from EU member states.

($ = 0.891477 euro)