The Public Debt Administration has announced a new government bond auction scheduled for November 25, offering investors 10 billion dinars in ten-and-a-half-year securities. This move marks the continuation of Serbia’s borrowing on the domestic market.
According to the Public Debt Administration’s Quarterly Report, Serbia’s outstanding debt from government bonds exceeded one trillion dinars as of September 30, reaching 1.039 trillion dinars, or approximately 8.86 billion euros.
Continuation of domestic borrowing
The upcoming auction represents the reopening of a long-term bond issue first launched in January this year. At that time, the Serbian government approved a total issuance of 120 billion dinars. According to the government’s decision, the Republic of Serbia issues long-term government securities “to finance the budget deficit, refinance maturing public debt obligations, and fund investment and program-related projects.”
The coupon rate for these bonds — representing the fixed annual interest paid to investors — stands at 5.25 percent.
Stabilizing investor demand after fluctuations
The November auction follows a year of varying investor interest. The September auction was successful, with nearly 11 billion dinars in bonds sold at a favorable yield rate of 5.10 percent. However, conditions were different in March, when demand significantly weakened, and only about one-third of the offered bonds were sold, as previously reported by Nedeljnik.
Economics professor Nikola Stakić attributed the weaker performance earlier this year to political and economic uncertainty. “A lower completion rate and fewer participants indicate an increased perception of risk,” Stakić said, noting that demand from the banking sector — traditionally the largest buyer of government securities — had declined notably.
