Serbia’s external debt inches down 0.1% y/y to EUR 26bn in Oct 2013

By bne IntelliNews December 23, 2013

Serbia's external debt stock edged down 0.1% y/y to EUR 25.5bn at end-October 2013 after increasing 3.4% y/y the month before as falling corporate and banking-sector indebtedness offset rising public foreign liabilities, central bank data showed.

According to IntelliNews calculations, the foreign debt equalled to nearly 78% of the full-year GDP forecast, down from 85.0% a year ago.

On a monthly basis, the external debt inched down 0.7% at end-October after dropping 1.1% m/m in September, due to lower foreign liabilities to the IMF, the EU, the London Club and other creditors.

Long-term public-sector borrowing grew 8.7% y/y to EUR 12.7bn at end-October, cooling from a 16.8% y/y rise the month before. Long-term private external indebtedness shrank 5.2% y/y to EUR 12.6bn after declining 6.0% y/y in September.
The annual decline in the short-term external debt stock deepened to 62.3% y/y at end-October, totalling EUR 216.7mn as the banking sector debt plunged 65.8% y/y to EUR 172.8mn.

Serbia's external debt growth braked to 6.6% in 2012 from 21.8% in 2008, reflecting the corporate and banking sector deleveraging. On the other hand, the external liabilities of the public sector increased steadily over the period due to rising fiscal imbalances.

In 2014, the country plans to borrow EUR 5.6bn to service its debt and finance a budget gap that is expected to reach 7.1% of economic output, finance minister Lazar Krstic has said earlier in December. In net terms, the country’s public debt will increase by EUR 1.6bn in 2014, Krsic underscored.

Related Articles

Russia keeps Serbia waiting for promised MIGs

Russia plans to deliver six used MIG 29 aircraft to Serbia by end-2017, Russia’s Federal Service for Military-Technical Cooperation (FSMTC) Director Dmitry Shugaev said on July 19, Sputnik ... more

Fiat workers end 3-week strike that halted production at Serbia's top exporter

Production at the Fiat Chrysler Automobiles (FCA) Srbija factory in Kragujevac will restart on July 19 after workers and Prime Minister Ana Brnabic agreed on the evening of July 18 to end ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more