INSUFFICIENCY OF SERBIAN ECONOMY'S OPERATING PERFORMANCES: MANIFESTATIONS, CAUSES AND MAIN GUIDELINES OF RECOVERY

Serbia faced the economic crisis with powerless and very fragile economy. The inconvenient transition heritage made the consequences of global economic crisis even worse. The companies that had already experien,ced serious problems approached to bankruptcy. Other, healthier com,panies, kept some kind of business activity, but they were faced with the lack of capital. Low activity level disabled generating higher incomes. In this way, the possibility of growth based on internal financing sources was limited. More difficult capital obtaining, by means of share issuan,ce, led the companies, due to insufficiently developed capital market, to borrowing at very high costs. The consequences are very worrying. In the first part of this paper, we will try to quantify the consequ,ences of Serbian economy's financial staggering. The aim is to visualize the complexity of financial and structural heritage and to show to what extent it is the burden to the growth of Serbian economy. At the same time, elaborations in this part should serve to identify some prerequisi,tes for the creation of favourable business environment, stimulating to investors and able to provide the economy to operate in normal con,ditions. Finally, in the third part, we point to the basic guidelines in the process of overcoming financial and structural problems.