The main reason identified for the big foreign-trade deficit in the past year is the inability of companies to find the funds to finance export production, according to Radovan Kovacevic, director of the Center for Scientific Research Work of the Serbian Chamber of Commerce.
Interest rates for commercial bank loans are too high to be stimulative, while the Development Fund, which grants credits under favourable conditions, demands guarantees which companies usually cannot provide.
Source: Tanjug News Agency
