1. IN SERBIA

2. Overview Executive Summary SWOT Analysis Macro Analysis Micro Issues
Entry Strategy
Conclusion
Work Cited

3. Executive Summary Why Serbia? Population: 7.5 million
Investment Initiatives:
- State grants in the range between €2,000 and €10,000 per every new job created and tax incentives now available
Quality Human Resource
- Skilled and productive labor force has proven to be one of Serbia’s major competitive advantages.
Strategic Geographic Location
- You can effectively serve your European and Middle Eastern customers thereby enhancing your business performance.
Low operating cost
- The tax system is highly conducive to investment featuring unique benefits.
Population: 7.5 million
GDP: $ billion
Real GDP/capita: $6,781
Real GDP growth: 6.1%

4. SWOT Analysis Strengths Weaknesses
GDP per capita increased from $1,160 in 2000 to $7,054 in 2008
Only European country with free trade agreements with EU and Russia
FDI increases every year
(US Steel, Philip Morris, FIAT, Gazprom, Carlsberg, Lafarge)
“Serbia is a great place to do business" Mr. Joseph Antoline, Executive Director of Finance for US Steel Serbia.
Weaknesses
14% Unemployment vs EU average of 8%
11 billion trade deficit
Devastating industry damages during NATO Bombings in 99
Only country in the region under UN sanctions
in last 20 years ( )

5. SWOT Analysis part 2 Opportunities Threats
Preparing to join EU; part of CEFTA and BSEC
Low wages for well educated work force and favorable tax code
Attracting FDI is set as a priority for the government of Serbia
Excellent strategic location and reformed legal system
Threats
Political unrest with Kosovo
Eastern Europe's economies have been hardest hit by the global recession
Long term population decline
Country’s debt to IMF and World Bank

6. Macro Analysis Geography Economic system
Serbia is located between Central, Southern, and Eastern Europe
Economic system
The economic system in Serbia is based on a market economy
Role of Government in the Economy
The Chairman of the National Bank of Serbia is appointed by the president to oversee the economy of Serbia
Current Political Conditions
2 mayor parties in Serbia are Democratic Party and Serbian Radical Party

7. Macro Analysis part 2 Foreign exchange rate Stability and performance
Interest rates
Reserve requirement rate: 2.50%
Key interest rate: %
Discount rate : 8.50 %
Foreign exchange rate
1 EUR = Dinars
1 USD= Dinars
1GBP= dinars
Stability and performance
In recent years, Serbia has been among Europe's fastest growing economies.
Over the past three years GDP growth averaged 6.8% with the forecast of 7% for the coming years.
Foreign currency reserves have reached a record-high of $11.5 billion and public foreign debt has been cut down to merely 30% of GDP.

8. Macro Analysis part 3 Government policies toward finance industry
No tariffs, or barriers to a foreign company starting a new bank, or foreign banking firm buying a smaller domestic banking firm
Some banks are state owned
Komercijalna Banka
Some banks were privatize
Vojvodjanska Banka
Some banks were bought out by FDI
Delta Bank by Intesa Saopaolo
Main Trading Partners
EU countries (around 53%)
CEFTA countries (around 30%)
CIS countries (around 10%)

9. Serbia in pictures

10. Micro Analysis Over 30 banks Competition:
Banca Intesa
Komercijalna Banka
Raiffeisen bank
Alpha Bank
Vojvodjanska banka
Citi Bank established office in Belgrade in 2006
The only other office Citi has in Southeast Europe is in Romania

11. Entry strategy Acquisition of an unrelated enterprise
Foreign Direct Investment (FDI) - company from one country making a physical investment into building a factory or company in another country. It needs to buy at least 10% of the company it is investing in.
Acquisition of an unrelated enterprise
Acquire Metals Bank (110 locations)

12. Conclusion Serbia has up and coming economy
FDI is the best route of investment for Citibank, because a joint venture, or licensing would take away from profits, without any obvious benefits.
Serbia has potential to be a leader in the southeast Europe
Great strategic location
Serbia is the only country with a free trade agreement between the European Union and Russia.

13. Work Cited

14. Questions?
Thank you