Serbia’s public debt increases 11% y/y to EUR 19.5bn at end-Nov 2013

By bne IntelliNews December 17, 2013

Serbia’s public debt rose 11% y/y to RSD 2,224.7bn (EUR 19.5bn) at end-November 2013 lifted by the country’s two Eurobond issues this year worth a combined USD 2.5bn, the public debt administration said in a statement. The reading equalled to 59.1 of the forecast full-year GDP, up from 58.7% of GDP a year ago. In monthly terms, the public debt inched up 1% m/m in November.

The bulk of the public debt is in foreign currency, out of which 47.6% is in euro and 25.2% in US dollars whereas 20.9% is in local dinar currency.

Serbia repaid RSD 464bn (EUR 4.1bn) of its public liabilities in January-November, out of which principal payments amounted to RSD 380bn, while interest and other costs were RSD 84bn.

The government serviced some RSD 268bn of its security papers debt, as well as RSD 96bn of due liabilities to foreign creditors over the period. Payments in respect of issued state guarantees equalled to RSD 27bn in the first eleven months of the year.

In January-November, the Treasury sold RSD 353bn (EUR 3.1bn) worth of securities on the domestic market, out of which RSD 279bn ​in RSD-denominated and RSD 75bn (EUR 0.7bn) in euro-denominated debt paper. Serbia also placed two Eurobond issues on the international debt market this year, bringing the total borrowing from both at home and abroad up to RSD 562bn, or nearly 15% of the full-year GDP forecast.

Serbia’s public debt is projected to increase to 64% of GDP this year from 61% of GDP at end-2012, well above the legal limit of 45%, according to the government. It is forecast to start declining in 2016 thanks to falling budget deficits.

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