Serbia’s public debt reached €41.8 billion at the end of July — whom does the state owe most?

According to the monthly report of the Public Debt Administration, at the end of July Serbia’s public debt reached 41.8 billion euros, or 43.9 percent of gross domestic product. External debt stands at 29.2 billion euros, while domestic debt at 10.9 billion euros; the remainder consists of indirect liabilities of around 1.7 billion euros.

More than half of the domestic debt consists of securities issued on the domestic market, worth 8.6 billion euros, while bonds dominate external debt at around 13 billion euros. Loans from commercial banks amount to 5.3 billion euros.

Among institutional creditors, the International Bank for Reconstruction and Development has lent Serbia 2.2 billion euros and the International Monetary Fund around 2 billion euros. The Chinese Export-Import Bank, with 2.7 billion euros, ranks third on the list, while foreign governments have lent Serbia 2.5 billion euros in loans.

In terms of currency structure, 63 percent of the debt is in euros, 20.6 percent in dinars and 11.1 percent in dollars. This year’s interest payment cost is 197.4 billion dinars, or around 1.7 billion euros.

Economist Saša Đogović warns that the passivity of the institutions managing the debt could turn it into a problem. According to him, current projects such as arms purchases, the national stadium or the dolphinarium will not help repay the debt; he calls for a strategic turn in economic policy, with a focus on high-tech industry and independent institutions.

Source: Danas