Serbia will continue paying Tito’s debt until 2041

Serbian taxpayers will continue paying Tito’s debts for another 20 years. The last instalments of the loans that Serbia took as a republic in the 1970s and 1980s are due in 2041, and their total amount is 1.5 billion euros.

The 30- and 40-year-old debts will be a noose around Serbia’s neck for years to come, Blic daily writes.

They will be repaid only when today’s young generation reaches their 50s, i.e. full 60 years after the same loans were obtained, back in the day when Josip Broz Tito was the Yugoslav president.

By the end of 2022, Serbia will have to pay exactly 241.8 million euros for loans taken during the period of the former Yugoslavia. It will have to settle debts towards the Paris Club, the World Bank, and Kuwait, with the last instalments due in 20 years.

As confirmed by the National Bank of Serbia, the last instalment of the loans taken from the Paris Club of Creditors, to which the country owes 741 million euros in total, is due in 2041.

* Paris Creditors Club – 740.94 million euros (the last instalment due in 2041)

* World Bank – Loan A – 187.44 million euros (the last instalment due in 2031)

* World Bank – Loan B – 356.19 million euros (final instalment due in 2031)

* Government of Kuwait (reprogramming) – 213.42 million euros (last instalment due in 2034).

During the 1970s and 1980s, Serbia borrowed a total of 8.8 billion euros.

The money was spent on economic measures (boosting consumer consumption and pensions). Up until 1978, Serbia was minimally indebted.

The biggest creditor of Serbia is the Paris Club, from which Serbia borrowed a total of four billion euros 40 years ago. In second place to the World Bank and the subsidiary of the IBRD.

By this Friday, Serbia is due to pay 10 million euros to the Kuwaiti government on the account of its debt.

(Vecernje Novosti, 18.01.2022)

This post is also available in: Italiano

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