Public debt up by EUR 1.5bn in 3rd quarter

Serbia's public debt totaled EUR 14.7bn at the end of September - some EUR 1.5bn more than at the end of June. The National Bank of Serbia (NBS) said that in the first nine months of 2011, Serbia's public debt increased by EUR 2.6bn, or 4.8 per cent of the country's GDP. Public debt up by EUR 1.5bn in 3rd quarter Serbia's internal debt and external debts both increased by EUR 1.3bn. The increase in public debt resulted in the growth of its stake in the estimated GDP to 46.7 per cent. According to the methodology the Finance Ministry uses to assess the fulfillment of conditions envisaged in the Budget Law, the stake of public debt in the GDP is lower and totals 44.5 percent. In case the limit of 45 per cent of the country's GDP is overstepped, the law envisages that the Fiscal Council and the government should file a plan for returning the debt within allowed limits, NBS recalled. For the most part, the increase in external debt came as a result of Serbia's debt based on the sale of USD 1bn worth of eurobonds on the global financial market. The country's debt based on the issue of eurobonds in the U.S. dollar in the third quarter of the year triggered a change in the currency structure of the public debt and an increase in the dollar stake in the debt structure from 12.2 to 17 percent. The dinar-based debt dropped from 18.5 per cent in June to 17.7 percent in September. The greatest part of the public debt is still based on the euro and totals 56.9 percent, while the share of all other currencies and special withdrawal rights amount to 8.8 percent.

Public debt up by EUR 1.5bn in 3rd quarter

Serbia's internal debt and external debts both increased by EUR 1.3bn.

The increase in public debt resulted in the growth of its stake in the estimated GDP to 46.7 per cent.

According to the methodology the Finance Ministry uses to assess the fulfillment of conditions envisaged in the Budget Law, the stake of public debt in the GDP is lower and totals 44.5 percent.

In case the limit of 45 per cent of the country's GDP is overstepped, the law envisages that the Fiscal Council and the government should file a plan for returning the debt within allowed limits, NBS recalled.

For the most part, the increase in external debt came as a result of Serbia's debt based on the sale of USD 1bn worth of eurobonds on the global financial market.

The country's debt based on the issue of eurobonds in the U.S. dollar in the third quarter of the year triggered a change in the currency structure of the public debt and an increase in the dollar stake in the debt structure from 12.2 to 17 percent. The dinar-based debt dropped from 18.5 per cent in June to 17.7 percent in September.

The greatest part of the public debt is still based on the euro and totals 56.9 percent, while the share of all other currencies and special withdrawal rights amount to 8.8 percent.