Spoljni dug i stepen spoljne zaduženosti Srbije
Foreign Debt and Foreign Debt Service of Serbia

Summary/Abstract: After very high credit borrowing in 2006 and the statement of a representative of the IMF, in the mid of April this year, on the foreign debt as the largest problem in Serbian economy, the dimension and level of it are again of current interest. At the beginning of disintegration of former Yugoslavia, Serbia was in the group of low indebted countries, for its foreign debt was lower than goods and services export, as well as its Gross Domestic Product (GDP) During the sanction period, due to regular and default interests accounting, Serbian foreign debt considerably increased while its GDP was decreased more than 50 percent, export was drastically reduced, thus, in 2000. Serbia was among the ten most indebted countries. In the past five years, the Paris Club wrote off 66%, while the London Club 62% of the Yugoslav debt, whereas the rest of it, with 5 years grace period, was restructured to 22, or 20 years. Despite it, the Serbian foreign debt grew dynamically because of high credit borrowing. For the last few years the private debt has grown considerably, especially noticed in 2006, so the foreign debt was 19.606 billion dollars at the end of year, which is 81% more than it was at the end of 2000. The Serbian foreign debt in Euros was 14.884 billions, which is 27,7% higher than at the end of 2000. Considering the data for 2006. Serbia was high indebted countries. New coming government of Serbia should engage the top experts from the field to create an optimal strategy for foreign debt management. This Strategy should be adopted in the Parliament and consistent carried out, in order to stay out of severe debt crises and unpleasant economic and social consequences.

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