NBS: External debt decreases but public debt increases

The debt analysis conducted by the National Bank of Serbia (NBS) showed that in the first three months this year external debt of Serbia has decreased by EUR 338, 2 mil while public debt has been on the increase for EUR 365, 8 mil.

The external debt of Serbia, i.e. total debt of the state and private companies towards all foreign trustees, totaled EUR 25, 5 billion while public debts, i.e. total debt of the state and public sector totaled EUR 20, 5 billion at the end of March.

According to the NBS analysis, decrease of external debt stake in GDP stake continued decrease to 80% while public debt stake in estimated GDP increased to 65,1%.

When it comes to external debt, banks have continued the trend of debts settlement but public sector also decreased its external debts towards foreign countries, as it was stated, mainly thanks to decrease of central bank debt towards the International Monetary Fund. Only companies, as it was said, during the first three months 2014 increased their debts abroad.

According to the analysis of the central bank, apart from external solvency indicators, external liquidity indicators are more favorable compared to previous quarter. The most important is, as it was said, improvement of indicators which follows the share of external debt pay off in goods and services export which, during the first three months, decreased for four percent to 27,2%.

On the other hand, due to long-term bonds emission borrowing of the state at the local market, public debt during the first quarter increased. The public debt sustainability indicator got worsened apart from those who observe it compared to export.

Apart from that, after three months of improvement, due date dynamics caused sustainability indicators deterioration. The indicator which follows public debt settlement compared to budget income which in the first quarter increased to 39,1% deteriorated to largest extent. Public debt settlement share in GDP increased also to 15,7%, goods and services export to 33,2 and goods and services export when added payment of transfer to 28,4%, it was stated at the NBS site.