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A:
Serbia’s debt down €4.4 billion compared to 2000
Belgrade,
28 June 2005
Serbian Minister of Finance Mladjan Dinkic said that Serbia’s debt today is €4.4 billion less than on December 31, 2000 and announced that the country’s debt now stands at €9.8 billion.
Mladjan Dinkic
Presenting the bill on public debt to Serbian parliament MPs, Dinkic said that the debt was €14.2 billion at the end of 2000.
Speaking of the public debt structure, the Minister specified that domestic debt is €4 billion, which includes old savings and loans for Serbia’s economic revival, while the external debt is € 5.8 billion.
Dinkic underlined that the debt was reduced from 170 percent to 56 percent of GDP and assessed that the country has thus fulfilled this condition for entering the EU, which limits debt to 60 percent of GDP.
He announced that tomorrow he expects the fifth revision of the arrangement with the International Monetary Fund and a €700 million debt write-off with the Paris Club of Creditors, which should make Serbia a medium indebted country.
Regarding the legal provisions, the Minister said that the public debt will include contract debts, treasury securities, restructured debts, as well as guarantees given to companies and local authorities.
According to him, borrowing can be done in order to make up the liquidity deficit, financing the budget deficit, refinancing outstanding debts, investment projects and issuing securities.
Dinkic pointed out that according to this law, local self-governments will be able to borrow based on the public debt, so that the principal is 15 percent of the budget and added that the law envisages the forming of a public debt directorate and introduces parliamentary control of the public debt.
Speaking of the public debt structure, the Minister specified that domestic debt is €4 billion, which includes old savings and loans for Serbia’s economic revival, while the external debt is € 5.8 billion.
Dinkic underlined that the debt was reduced from 170 percent to 56 percent of GDP and assessed that the country has thus fulfilled this condition for entering the EU, which limits debt to 60 percent of GDP.
He announced that tomorrow he expects the fifth revision of the arrangement with the International Monetary Fund and a €700 million debt write-off with the Paris Club of Creditors, which should make Serbia a medium indebted country.
Regarding the legal provisions, the Minister said that the public debt will include contract debts, treasury securities, restructured debts, as well as guarantees given to companies and local authorities.
According to him, borrowing can be done in order to make up the liquidity deficit, financing the budget deficit, refinancing outstanding debts, investment projects and issuing securities.
Dinkic pointed out that according to this law, local self-governments will be able to borrow based on the public debt, so that the principal is 15 percent of the budget and added that the law envisages the forming of a public debt directorate and introduces parliamentary control of the public debt.
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