Serbia to pay 85 mln euro of so-called Tito’s debt in September

Come September Serbia will have to pay over 85 million euro worth of Yugoslav loans, on the basis of an agreement that former Yugoslav Prime Ministers made with the world’s creditors in the 1970s and 1980s.

Part of the sum is what the former Yugoslav PMs, Milka Planinc and Veselin Đuranović agreed with the Paris Club and the World Bank. The last instalments of these loans are supposed to be paid in 2041 and 2031 respectively.

In September, Serbia will have to pay 75.3 million euro of loan taken from the Paris Club of creditors, of which about 13 million euro in interest. Exactly on September 15, the loan of 11 million that Serbia has taken from the World Bank, will have to be paid too.

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During the 1970s and 1980s, Serbia borrowed a total of 8.8 billion euro, including 3.8 billion from the Paris Club and 2.2 billion from the London Club. In the last few years, Serbia repaid an average of 250 million euro annually.

The biggest amount of money is owed to the Paris Club – 1.09 billion euro (borrowed nearly four decades ago), followed by the World Bank (700 million euro), and its subsidiary IBRD (1.8 billion euro), as well as to China (15.9 million) and Kuwait (253.1 million).

The Croatians have paid to the London and Paris Club of creditors their last debt instalment ten years ago. Croatia paid the last instalment of 192 million dollars to the Paris Club in 2008 and 78 million dollars to the London Club one year later. Slovenia paid the last instalment of 525 million dollars in 1995.

One of the biggest financial obligations for Serbia this year was definitely the debt stemming from Eurobonds, a total of 196 million euros, which was paid in February. A little more than 53 million were paid in March this year, while 53 million will have to be paid in September.

(Blic, 29.08.2020)

This post is also available in: Italiano

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