Public debt increase trend "will not persist"
The tendency of increase of Serbia's public debt reported in January "will not continue in February," Finance Minister Dusan Vujovic has said.
Wednesday, 25.02.2015.
11:25
Public debt increase trend "will not persist"
The reason the trend will not persist, the minister said, is that Serbia "recorded a budget surplus in the first 50 days of the year."According to him, the public debt increase of five percent of GDP to 70.9 percent of the GDP in December 2014 was brought about by the altered exchange rate between the U.S. dollar and the Serbian dinar, thus the realistic public debt increase totaled only USD 100 million, while the rest of the sum was created owing to exchange rate discrepancies.
In case the instability of exchange rates on the global financial market persists, we will face instability of indicators included in the public debt with GDP expressed in the dinar, Vujovic explained.
The minister underscored that the Serbian government "will fight against the risk of an unstable exchange rate by high solvency in both the U.S. dollar and the euro."
Vujovic announced the possibility of taking out new loans on the global financial market in the next five to six months but only on the condition that the Serbian government establishes that the conditions are favorable, interest rates low and funds for improvement of solvency taken in advance.
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