Among the key reasons for improved Serbian macro prospects in international analyses one would find the following: First, the external debt structure was changing patterns over the past year. Banks’ external funding sources increased in maturity. While the long-run debt made up 56% of banks’ total external debt in January 2010, it grew to 75% by October 2011.
Also, corporates’ external debt kept shifting from cross-borders towards domestic banking sector borrowing, yielding several important consequences. Domestic debt is under the strong prudential supervision of the National Bank of Serbia. Furthermore, domestic real credit growth of 15.2% in 2010 and 9.0% p.a. in October 2011 indicates the growth potential of the Serbian banking sector.