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Economy

China refused Serbia's debt reform program 

June 27, 2023, 13:43 p.m Z.S.
Photo: Printskrin/Dragan Trifunovic Helivideo
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The Serbian government recently tried to agree on a rescheduling of its obligations to Chinese creditors, but the partners from Beijing were not interested in any concessions. After the negative response, Serbian President Aleksandar Vučić asked Luxembourg Prime Minister Xavier Bethel for help on the sidelines of the European summit in Moldova earlier this month.

The Government of Serbia recently announced an extensive program of public spending - from an increase in salaries in the public sector and pensions to the distribution of 10.000 dinars for children up to 16 years of age.

The cost of the new package will be, as calculated by the Fiscal Council, EUR 550 million, and although Finance Minister Siniša Mali assures that there is money for these measures, events behind closed doors indicate that the state is rapidly trying to clear space elsewhere in order to free up funds. for the measures presented by President Aleksandar Vučić.

The Chinese are not interested in concessions

That's right, as he finds out Demostat, the Government of Serbia recently tried to agree on a rescheduling of its obligations to Chinese creditors, but the partners from Beijing were not interested in any concessions.

According to the data of the Public Debt Administration, Serbia currently has obligations of a total of 2,26 billion euros to the Export Import Bank of China, the institution through which almost all the loans we take from this country go.

In addition, there is also a debt of 23,78 million euros to the Hungarian branch of Bank of China for the construction of sewage infrastructure in 11 cities throughout Serbia.

For all these loans, Serbia will have to provide 128 million euros this year, just for repayment of the principal, as shown by Demostat's calculation based on data from the republic's budget for 2023.

Also, 2,2 billion euros is the current state of Serbian debt to the Export Import Bank of China, significantly less than the total contracted volume of loans with this bank.

Read the entire text at Demostat.rs

ZS/Demostat

Read daily news, analysis, commentary and interviews at www.vreme.com

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China Public Debt Investments debt reprogramming China loan repayment Serbia
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