The state, the economy and the population in Serbia owe almost 100 billion euros

Published on 3. February 2023., News

When the total debt on all bases is added up, the state, the economy and the population in Serbia owe almost 100 billion euros through public debt, external debt of the economy and population and debt based on foreign investments that have arrived, i.e. property owned by non-residents.

Serbia is a net debtor based on foreign investments for more than 48 billion euros. Namely, obligations based on the inflow of foreign investments are 82.9 billion, while the total amount of domestic investments is 34.6 billion, according to the analysis of data on the international investment position of Serbia on the portal macroeconomy org.

On the asset side, other investments and foreign exchange reserves of over 16 billion euros predominate. Other investments consist mainly of trade and commercial loans and cash on accounts abroad. In terms of liabilities based on foreign investments, the positions of reinvestment of profits of over eight billion euros and debt instruments of over 10 billion euros are particularly sensitive.

When the total debt on all bases is added up, the state, the economy and the population are indebted to almost 100 billion euros through public debt, external debt of the economy and population and debt based on foreign investments, i.e. property owned by non-residents.

Excessive risk of “escape” of foreign capital

If we add to that the liabilities of banks that are almost 100% foreign-owned, i.e. cash reserves with the NBS in the amount of over 900 billion dinars or 8.3 billion euros, foreign liabilities of 722 billion and capital and reserves of 702 billion, the total open the position of the banks is 20 billion euros.

From the aforementioned data, it follows that economic and social life in Serbia is practically maintained in a fragile and unstable environment, through the accumulation of public debt of the state, external debt of the state and the economy, and the ownership of the economy and financial system by non-residents.

This position makes the country very vulnerable to external shocks and the risk of “capital flight”, which significantly affects Serbia’s overall sovereignty in international relations, its political and economic position, the analysis concludes.

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