financing environment

Higher Interest Rates Alter Financing Landscape in Serbia

Serbia's financial system is currently stable, yet the dynamics of capital allocation are evolving. The rise in interest rates, influenced by broader monetary tightening in Europe, is transforming the financing environment, leading to increased capital costs and a more selective lending and investment approach. The benchmark policy rate stands at approximately 5.75%, reflecting a cautious stance towards inflation, which has stabilized between 4.4% and 4.7%. While inflationary pressures have eased, monetary authorities are prioritizing stability, resulting in a tighter financing…