Economist Professor Dr. Slobodan Komazec stated that Serbia’s national debt has reached €105.3 billion and warned that the country is approaching bankruptcy. He explained that uncontrolled borrowing has burdened the economy, hindering its development.
According to Komazec, Serbia’s public debt is over €40 billion, with €27.8 billion in external debt and €12.2 billion in internal debt. Additionally, companies owe €18.3 billion abroad, while domestic banks hold €11 billion in corporate debt. The population owes €14.3 billion to domestic banks.
There are also other financial burdens on the economy, including €4 billion in unpaid VAT, €1.1 billion in state-issued guarantees, €5 billion in overdue interest payments, €10.8 billion in foreign direct investment debt, and €820 million in unpaid pensions due to fiscal consolidation. In total, Serbia’s liabilities amount to €105.3 billion.
Komazec criticized the government’s “spontaneous” borrowing approach, which lacks strategic planning, and warned that it leads to rising debt and risks insolvency. He noted that the debt now amounts to 113% of Serbia’s GDP, or 138% if other obligations are included. Even considering a “corrected” GDP of €82 billion, the debt still exceeds 100% of GDP.
Komazec also highlighted the inefficiency of foreign direct investments (FDIs) in boosting GDP, stating that between 2012 and 2024, Serbia received €38.4 billion in FDIs, but GDP growth only reached €38.2 billion. He concluded that this borrowing strategy is not a leap into the future but a path toward state bankruptcy.
