Another source of demand during the latest cycle, at least in its early stages, has been the significant demand for properties by non-residents particularly in coastal and lakeside regions. The relatively low New Zealand dollar up until about 2002 helped to make such properties particularly attractive to foreign buyers.
Today, I would like to talk about the impact of these unprecedented challenges on the financial sector of Serbia, focusing in particular on: 1. Effects so far  2. Likely future course of the crisis  3. Long-term effects  1. The effects on the Serbian banking system are already evident, as private individuals have lost no time in responding to external shocks.