The tendency of increase of Serbia’s public debt, which totalled around EUR 23.2 billion or 72.3 percent of the country’s GDP on January 31, will not continue in February because the country recorded a budget surplus in the first 50 days of the year, Finance Minister Dusan Vujovic stated on Tuesday.
The public debt increase of 5 percent of the 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 totalled 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 the GDP expressed in the dinar, Vujovic explained.
The minister underscored that the Serbian government will fight against the risk of an instable 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 favourable, that interest rates are low and that funds for improvement of solvency are taken out in advance.
Source; SerbGov
