A sudden jump in the cost of borrowing

21.September 2022 Bogdan Petrovic

A financial storm

Money will be expensive in the coming period for both the state and the population. The state needs several billion euros by the end of the year to return due obligations and cover the budget deficit, as well as to help EPS and Srbijagas. Only for existing debts, the state will have to allocate over 300 million euros more than last year based on the increase in interest on already taken loans. The situation will not be any better next year either, because we have to service at least four billion old debts, and at the same time we need to pay for the import of electricity and gas during the heating season.