The rand initially depreciated in response to the widening of the deficit on the current account of the balance of payments but depreciated further largely as a result of a rising risk premium, following protracted labour disputes in the mining and agricultural sectors in particular, as well as downgrades by the three main ratings agencies.
We shall continue our efforts to improve terms of these credit lines in agreement with the Government of the Republic of Serbia and the donors but, on the longer run, our banks should also be finding greater interest in extending credits to small and medium sized enterprises. They shall certainly be forced to do so by the competition and long-term business interest.