Q:
A:
Early repayment of half of debt to London Club of Creditors
Belgrade,
17 March 2013
The Ministry of Finance and Economy announced today that the government has approved the proposal of the Ministry to make early payment of half of the remaining debt to the London Club of creditors at the end of April.
Author:
Tanjug
Serbia's debt to the London Club is now $860 million. Thanks to the early repayment and repayment of the regular installment, the country’s total public debt will be reduced by $435.8 million.
The interest rate on the London Club debt is 6.75%, which is by about two percentage points up compared to the interest rate by the Ministry of Finance achieved by selling Eurobonds in February this year.
Serbia is able to make early payments of expensive loans thanks to significant solvency the Serbian budget has secured in the last several months. Fiscal policy measures have also given great results in decreasing interest rates on the public debt.
Thanks to the early repayment in April, Serbia will save RSD 1.1 billion and significant savings will be made in the next several years bearing in mind that the country will have to allocate less money for payment of interest rates.
The share of total public debt to gross domestic product at the end of February was 57.7%.
The Republic of Serbia in February paid €419 million for due loan repayment.
The budget deficit of the consolidated accounts amounted to RSD 22.7 billion.
In January, Serbia recorded a surplus of RSD 3.8 billion, while the February deficit was RSD 26.6 billion.
Such fiscal developments in the first two months were largely in line with the plan and show that the consolidated deficit on an annual basis should be very close to what is stipulated in the budget for this year (RSD 132 billion, or 3.6% of GDP), which is twice less than in the previous year.
The interest rate on the London Club debt is 6.75%, which is by about two percentage points up compared to the interest rate by the Ministry of Finance achieved by selling Eurobonds in February this year.
Serbia is able to make early payments of expensive loans thanks to significant solvency the Serbian budget has secured in the last several months. Fiscal policy measures have also given great results in decreasing interest rates on the public debt.
Thanks to the early repayment in April, Serbia will save RSD 1.1 billion and significant savings will be made in the next several years bearing in mind that the country will have to allocate less money for payment of interest rates.
The share of total public debt to gross domestic product at the end of February was 57.7%.
The Republic of Serbia in February paid €419 million for due loan repayment.
The budget deficit of the consolidated accounts amounted to RSD 22.7 billion.
In January, Serbia recorded a surplus of RSD 3.8 billion, while the February deficit was RSD 26.6 billion.
Such fiscal developments in the first two months were largely in line with the plan and show that the consolidated deficit on an annual basis should be very close to what is stipulated in the budget for this year (RSD 132 billion, or 3.6% of GDP), which is twice less than in the previous year.
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