The south-eastern European states formerly associated with the Soviet Union have been slow to privatise state-owned assets when compared with their western European neighbours, but political reforms and softening attitudes mean fresh momentum is spurring a wave of long-delayed sell-offs in the region, particularly in Serbia and Slovenia.

Serbia's economic struggles have been well documented over the past few years, with its fiscal deficit particularly worrying. The country's finance minister, Dušan Vujović, tells Stefanie Linhardt how the government's reforms are already advancing down a route he hopes will lead to full EU accession.

Private equity investment in central and eastern Europe could be set to increase as investors look to capture the region’s potential as its economies return to growth. 

Subdued growth prospects and the uncertain future of some foreign parent banks looks set to impel the Serbian banking sector toward fewer, stronger players.

Although foreign banks may be reining in finance for their subsidiaries in central and eastern Europe, any transition to local currency bond financing looks likely to be gradual.

Corporate banking in Serbia remains under pressure from excess leverage, legal shortcomings and the absence of a capital market.