Serbia's foreign debt up 7.4% y/y to EUR 25.5bn in October 2012.

By bne IntelliNews December 7, 2012
Serbia's foreign debt went up 7.4% y/y to EUR 25.5bn in October 2012 after rising 4% y/y in September 2012, central bank data showed. In monthly terms, the foreign debt increased by EUR 704mn (up 2.8%) at end-October, lifted by a USD 1bn Eurobond issue placed by the government on the foreign market. The external debt-to-GDP ratio increased to 86.5% at end-October from 76.3% in the like period of 2011. The long-term external debt was up 8.7% to EUR 24.9bn (97.7% of total external debt) in October, while short-term debt shrank by 28.5% y/y to EUR 575mn (2.3% of total). The October increase of the long-term foreign debt was supported by growth in both public and private sectors' indebtedness. Long-term public debt jumped 11.7% y/y to EUR 11.6bn. Long-term corporate debt climbed 7.5% y/y to EUR 9.6bn, while the banking sector's long-term external debt went up 2.7% on the year to EUR 3.7bn. The annual decline in the short-term external debt in October was mainly due to a drop in the banking sector's foreign liabilities (down 31.4% to EUR 504.7mn). Short-term corporate debt went up 1.6% y/y to EUR 70.3mn in October. Serbia's external debt rose 48.7% in the 2006-2008 period prior to the global financial crisis. However, the foreign debt growth decelerated significantly to 1.4% in 2011, compared to 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 and their share in total external debt reached 45.6% at end-Oct 2012, up from 30.8% at end-2008. The November sale of another Eurobond issue worth USD 750mn will result in a further increase of the external debt in the following months.

Serbia's foreign debt up 7.4% y/y to EUR 25.5bn in October 2012.

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