Serbia’s public debt up 0.4% m/m and 21% y/y to EUR 19.1bn at end-August 2013.

By bne IntelliNews September 17, 2013

Serbia’s public debt rose 0.4% m/m to EUR 19.1bn at end-August or 58.3% of the forecast GDP, data from the finance ministry showed. In annual terms, the public debt climbed 20.8% y/y, lifted by Serbia’s three Eurobond issues since end-September 2012, worth a combined USD 3.3bn. The bulk of the public debt is in foreign currency, out of which 48.3% is in EUR and 26.5% in USD. Another 18.7% of the debt is denominated in local dinar currency, the country’s debt administration said.

End-August public debt, excluding state guarantees, rose 7.9% ytd to EUR 16.3bn (85% share of total debt). The state guarantees climbed 11.0% ytd to EUR 2.9bn.

The country's public debt increased significantly to 59% of GDP at end-2012 from 29% of GDP at end-2008, well exceeding the legal limit of 45% of GDP.

Serbia’s public indebtedness will likely continue increasing as the country seeks to finance its rising budget gap. The latter is projected to reach 5.3% of GDP in 2013, according to the revised budget law, up from initially planned 3.6% of GDP. Serbia is preparing a new Eurobond issue worth USD 1bn, local media reported earlier. Furthermore, the country is considering borrowing another USD 2bn-3bn from the United Arab Emirates in order to repay some of its debts and raise money for investments, deputy PM Aleksandar Vucic said last week.

According to the independent fiscal council, the end-2013 public debt will reach EUR 21bn or 65% of GDP. The council also warned that local dinar currency weakening since end-May could result in an increase of the public debt-to-GDP ratio, as over 70% of Serbia public debt is EUR and USD denominated.

Serbia's public debt, EUR mn Dec'10 Dec'11 Dec'12 Aug'13
Public debt excluding guarantees 10,444.5 12,674.7 15,070.7 16,264.0
-- Internal debt 4,571.8 5,118.4 6,452.6 6,536.0
-- External debt 5,872.7 7,238.6 8,618.1 9,728.0
Public debt including state guarantees 1,712.5 2,109.6 2,600.4 2,885.6
-- Internal debt 340.0 535.8 722.6 834.2
-- External debt 1,372.5 1,573.8 1,877.8 2,051.4
Total public debt 12,157.0 14,784.3 17,671.1 19,149.6
Public dept/GDP, % 44.5 48.2 59.3 58.3
Source: MinFin      

Related Articles

Former Kosovan premier Ramush Haradinaj arrested in France on Serbia’s warrant

Ramush Haradinaj, a former Kosovan prime minister and the leader of the opposition Alliance for the Future of Kosovo (AAK),  has been taken into police custody in France on a Serbian arrest ... more

China’s Hesteel Group to invest $120mn in Serbia’s Smederevo steel mill

China's Hesteel Group, which acquired Serbia’s only steel mill in July, will invest $120mn in the Serbian company in 2017, ... more

Belgrade Stock Exchange joins SEE Link platform

The Belgrade Stock Exchange (BELEX) has become an active member of the regional SEE Link network, SEE Link announced on December 5. SEE Link is a project started by the Bulgarian, Macedonian and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss