European Bank for Reconstruction and Development (EBRD) Chief Economist Erik Berglof said on June 20 that Serbia was coming out of the economic crisis, but that a high unemployment rate and the improvement of employment conditions were the main challenges that required resolving.

Berglof told journalists after a meeting between a delegation of 60 EBRD directors and representatives and members of the Serbian Business Club Privrednik that the main topics of discussion had been how to repair the business climate in Serbia and allow business to become more competitive.

"Serbia was hit by the economic crisis, went through a difficult time and is now coming out of the crisis, although there are still many challenges such as the high rate of unemployment and the large percentage of late loan repayments," he said.

According to Berglof, "there is not enough transparency in how the government uses resources and what it is doing with assets." He added that it was "important to create room for the development of the private sector and ensure that the government does not slow down business payments."

Berglof underscored that the EBRD invested a record-breaking EUR580 million in Serbia last year and that it will continue financing projects in all areas of business this year.