How much debt does Serbia have?

So far, Serbia has borrowed a total of 8.37 billion euro from European banks, including the EBRD, the EIB, the CEB, the German Development Bank and the International Bank for Reconstruction and Development (IBRD), while it owes 1.15 billion euro to the Chinese EXIM Bank and a total of 2.66 billion euro to foreign governments, writes Biznis i Finansije magazine.

The latest official overview of the state of public debt as of 31 March indicates several interesting facts.

For instance, Serbia currently owes more on the basis of securities issued on the domestic market (EUR 10.88 billion) than on the foreign market (EUR 6.16 billion). When it comes to current debt to foreign governments, neither the EU, nor China, nor Russia are in the first place, but its the Government and the Abu Dhabi Fund with 1.72 billion euro which is how much Serbia owes.

Also, Serbia owes a total of 2.66 billion euro to foreign governments, about as much as to the International Bank for Reconstruction and Development (IBRD), to which it currently owes 2.19 billion euro.

At the end of the first quarter, the total public debt stood at EUR 28.1 billion, or 55.7 per cent of GDP; the limit was drawn by Serbian President Aleksandar Vučić, who stated that “the share of public debt may not exceed 60.5 per cent of GDP”.

Instead, the budget review envisages a deficit of 381.7 billion dinars and another 478.6 billion dinars for the repayment of capital and purchase of financial assets. This means that the state would have to provide just over 7 billion dinars to cover both of these amounts, which raises the question of the price of future borrowing, both bilaterally, with foreign countries, and on the international financial market.

The public debt to GDP ratio at the end of this year will depend on whether the Government’s projection of economic growth of 6% comes true, the basis on which both the budget and the budget review were made.

(Danas, 01.07.2021)






This post is also available in: Italiano

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