What is certain in this time of uncertainties seeping in from the international environment is that the National Bank of Serbia shall, as so far, rise to all the challenges and that Serbia will record higher and sustainable economic growth rates led by export-oriented investment.
The “no-bail out” clause, which prohibits a member state from assuming liability for another one’s debts, was expected to enhance market discipline. But as it turned out, it simply wasn’t credible enough. At least, markets did not adequately price in the risk of sovereign insolvency. What is more, the preferential treatment of sovereign borrowers encouraged banks to step up their lending to governments.