Serbia’s public debt decreases to 73.1% of GDP at end-June

Serbia’s public debt decreases to 73.1% of GDP at end-June
By Ivana Jovanovic in Belgrade July 26, 2016

Serbia’s general government public debt decreased to RSD3,030.58bn (€24.58bn) or 73.1% of GDP on June 30 from RSD3,039.2bn or 73.3% of GDP at end-May, preliminary data from the ministry of finance’s public debt administration showed.  

Serbia's general government public debt returned to its downward trend in June, after in May it went up to 73.3% of GDP. The earlier downsizing in March and April was thanks to the weakening of the US dollar, as over 30% of the country's public debt is denominated in US dollars. The increase registered in May was expected as the US dollar strengthened against the euro following the Brexit vote.

According to the public debt administration, of Serbia’s total public debt on June 30, 40.8% was in euros, 33.3% in US dollars and 20.0% in Serbian dinars.

In May, 40.5% of Serbia’s public debt was in euros, 33% in US dollars and 21.4% in Serbian dinars.

Serbia’s total foreign debt stood at €14.99bn at end-June.

The Serbian government is aiming to bring public debt down to 45% of GDP within the next few years, and in addition to public salary and pension cuts, it is restructuring public enterprises and repaying debts to foreign creditors to achieve this goal.