Serbia’s foreign debt totals EUR 22.99bn

Serbia's foreign debt totaled EUR 22.99bn at the end of January this year, which is 3.3 percent less than in December last year. According to the latest bulletin of the Belgrade Market Research Institute (IZIT), this is, howevever, 0.9 percent more than in December 2009. Serbia’s foreign debt totals EUR 22.99bn The decline in foreign debt is normal for that time of year, as debt is paid off by companies and by business banks which borrow more in December to meet increased demand for loans ahead of the holidays, IZIT experts noted. The foreign debt of the private sector totaled EUR 13.97bn at the end of January and was five percent lower than one month earlier, and as much as 10.2 percent below the December 2009 debt. On the other hand, public foreign debt, which totaled EUR 9.02bn in January, was 0.6 percent lower than in December 2010, but a whole 24.7 percent higher than in December 2009. The ratio of Serbia's foreign debt to GDP is 79.6 percent, which, with more borrowing to come in 2011, lands the country well inside the serious indebtedness zone. The ratio of foreign debt to the export of goods and services is close to 2.4, and the bar for high indebtedness is set at 2.2. Looking at the structure of the foreign debt, it is notable that the public sector's share has been rising. The public debt's share rose from 34.5 percent in December 2009 and 38.2 percent in December 2010, to 39.2 percent in the first month of 2011.

Serbia’s foreign debt totals EUR 22.99bn

The decline in foreign debt is normal for that time of year, as debt is paid off by companies and by business banks which borrow more in December to meet increased demand for loans ahead of the holidays, IZIT experts noted.

The foreign debt of the private sector totaled EUR 13.97bn at the end of January and was five percent lower than one month earlier, and as much as 10.2 percent below the December 2009 debt.

On the other hand, public foreign debt, which totaled EUR 9.02bn in January, was 0.6 percent lower than in December 2010, but a whole 24.7 percent higher than in December 2009.

The ratio of Serbia's foreign debt to GDP is 79.6 percent, which, with more borrowing to come in 2011, lands the country well inside the serious indebtedness zone.

The ratio of foreign debt to the export of goods and services is close to 2.4, and the bar for high indebtedness is set at 2.2.

Looking at the structure of the foreign debt, it is notable that the public sector's share has been rising.

The public debt's share rose from 34.5 percent in December 2009 and 38.2 percent in December 2010, to 39.2 percent in the first month of 2011.