Serbia directly incurred €5.2 billion of debt in 2025, according to data from the Financial Report bill.
In the draft Financial Report bill, currently under consideration by MPs, it is noted that Serbia contracted €4.65 billion in foreign loans last year. Added to this are another 70 billion dinars – equivalent to roughly €600 million – obtained from four domestic banks, according to calculations by Forbes Serbia. If state guarantees provided to public companies are included, the debt increases by approximately another €500 million.
The draft report states that the new direct liabilities of the State arising from loans contracted in 2025 were confirmed and regulated by law. These involve 18 laws confirming foreign debt and another four related to loans contracted in Serbia with commercial banks operating in the domestic market.
New foreign debts
By far the largest portion of the €4.65 billion – arising from the 18 loan agreements signed in 2025 – pertains to the purchase of French Rafale fighter jets. Under the contract signed in May last year, the State took out a €1.92 billion loan with a consortium of French banks.
Immediately following is a €1.13 billion loan agreed with the European Union. As shown in the list of new direct liabilities of the State, the contract was concluded at the end of 2024 but ratified last year. These funds were obtained for the Western Balkans Reform and Growth Facility project.
Under four loans agreed with the International Bank for Reconstruction and Development, the State assumed debts totaling €272 million. These loans were primarily taken out for projects such as tax administration reform, promoting innovative entrepreneurship, and strengthening a more inclusive education system in Serbian schools.
Several loans were also contracted with the European Investment Bank, including those earmarked for clinical centres, the Niš-Dimitrovgrad railroad, and a green finance loan. Their combined total stands at €357 million.
The list of creditors also includes the European Bank for Reconstruction and Development, Germany’s KfW, and the French Development Agency. Most of these loans are not directly aimed at specific infrastructure projects, but rather at reforming various sectors and public policies.
New debt for the Morava Corridor and domestic bank loans
Among last year’s new borrowings is the latest loan – the fourth in sequence – taken out by the State to finance the construction of the Morava Corridor. This involves an amount of €260 million and, once again, the lenders consist of a consortium of banks, this time led by JPMorgan.
In addition to these 18 foreign loans, the State also contracted new loans from domestic banks, as detailed in the Financial Report. The four loans listed under domestic debt amount to exactly 70 billion dinars. Converted at the average exchange rate for 2025, this equals nearly €600 million.
The list includes a 12 billion dinar loan contracted with Banca Intesa for the Ruma–Šabac–Loznica road section. The loan agreement was signed at the end of 2024 but ratified early the following year.
For the same road, the State also secured a loan from UniCredit Bank for an amount of 8 billion dinars.
Furthermore, there is a 15 billion dinar loan taken out with OTP Bank for the construction of a section of the Danube state road from Požarevac to Golubac. Finally, a 35 billion dinar loan was contracted with NLB Komercijalna Banka for the motorway from Belgrade to Novi Sad via Zrenjanin.
All of these loans were contracted in dinars, but include a foreign currency clause.
Growing reliance on commercial banks
Public debt figures indicate that the State is increasingly turning to commercial banks for dinar-denominated loans. This is confirmed by both the 2025 public debt report and data from the Public Debt Administration. Comparing the situation over the past five years, debt owed to commercial banks has climbed from €700 million to a striking €5.3 billion as of June this year.
In the list of Serbia’s creditors from June 2022, commercial banks held tenth place in terms of total debt volume. Ranked above them were buyers of dinar- and euro-denominated government bonds, as well as the International Monetary Fund, the European Investment Bank, the EBRD, and foreign governments.
By June this year, the picture was drastically different. Commercial banks now occupy third place on Serbia’s list of creditors, immediately behind holders of Eurobonds and long-term debt securities issued in dinars.
State-guaranteed loans
In addition to direct new debt, state-guaranteed loans contracted on behalf of public enterprises in 2025 must also be taken into account. Their combined total, based on our calculations, stands at €495 million and encompasses both foreign borrowings and loans secured through domestic banks.
Among the State’s new indirect liabilities – meaning guaranteed loans that the State is obliged to repay should the primary borrower default – those contracted by EPS and Srbijagas predominate.
EPS borrowed exactly €67 million from the European Bank for Reconstruction and Development for the rehabilitation of the Vlasina hydroelectric power plants. A further €30 million was obtained by EPS from the German development bank KfW for the Kostolac wind farm, for which the State also provided a guarantee.
Elektromreža Srbije borrowed €12 million from the French Development Agency under a state guarantee. Regarding foreign sources, there are also two loans taken out by Srbija Voz: one for €90 million and another for €42 million. In the first instance, the lender is Eurofima (Société européenne pour le financement de matériel ferroviaire). The smaller loan was contracted with the European Bank for Reconstruction and Development.
Where Srbijagas is borrowing
Data from the Financial Report shows that Srbijagas primarily borrowed from domestic banks. Consequently, indirect state debt also includes loans taken out by Srbijagas from Poštanska Štedionica, Banca Intesa, and OTP Bank.
For the Belgrade-Valjevo-Loznica gas pipeline, a loan of €30 million was contracted with Intesa, while €45 million was borrowed from the same bank for the Leskovac-Vranje pipeline. For this latter project, Srbijagas borrowed an additional €15 million from Poštanska Štedionica.
Loans from the same banks and for identical amounts were also secured for the Horgoš project, while a loan of €51 million was obtained from Poštanska Štedionica for the rehabilitation of gas transport systems.
Also included among state-guaranteed loans is one for EPS totalling €52.5 million, contracted directly across the three aforementioned banks.
The overall amount of new guarantees granted to foreign creditors comes to €241 million, while credit lines totalling €253 million were guaranteed for domestic banks in favour of Srbijagas and EPS.
In the Financial Report, the government further indicates that Serbia’s total public debt stood at €39.6 billion at the end of 2025.
Restitution and bonds
Alongside direct new debt, the Financial Report details new liabilities stemming from the restitution of confiscated property. The bill establishes that on 26 September 2025, the government adopted a decision to issue bonds maturing in five, ten, and twelve years. This decision was taken to satisfy compensation claims for confiscated property based on final decisions issued between July 2024 and June 2025.
The decision on the issuance of euro-denominated bonds, for a total value of €48.6 million, was published on 26 September 2025. Bonds repayable in five annual instalments amount to €5.1 million; those in ten annual instalments total €4.89 million; whilst those with a 12-year maturity amount to €38.5 million.
(Forbes Serbia, 26.08.2026)
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