While government representatives claim that the republic’s coffers are under control, the Fiscal Council warns that there will be new large borrowing next year. They also warn that interest rates have risen. Economic experts say that Serbia is borrowing three times more expensive than before and that the interest on the state’s debt will continue to rise.
Year after year, Serbia is only in debt. More than a month ago, it took a loan of one billion dollars from the United Arab Emirates, which the government claims is favorable and is a “real gift” in relation to borrowing conditions in the markets. Whether it was a gift or not, the practice of borrowing is not the end, because the Fiscal Council forecasts the same scenario for 2023.
“Serbia will have to take on significant debt. The debt of four billion is coming due, for which she will borrow in order to be able to pay it back. Two to three billion will be related to deficits. On the other hand, Serbia already has some reserves, it has already borrowed from the Emirates. Somewhere around three to four billion euros will certainly have to be borrowed additionally, and interest rates are now at least seven to eight percent”, said Pavle Petrović, president of the Fiscal Council.