The government has repaid part of the old debts: 240 million euros from the budget

The principal refers to 227.44 million, and the interest to 13.07 million

Spajic's control hearing on bonds on March 17: Illustration, Photo: Shutterstock

EUR 240.52 million was paid from the state budget on the basis of debt for Eurobonds from 2016 issued by the former government, and the money was provided on time from a loan provided by the current government on the international financial market at the end of December last year in the total amount of 750 million euros, “Vijesti” learned from sources in the executive branch.

This is the largest installment for debts due this year.

The Ministry of Finance and Social Welfare confirmed that the repayment of due obligations based on the issue of Eurobonds from 2016 was made on March 5 this year.

The principal refers to 227.44 million, and the interest to 13.07 million.

In October last year, the Ministry of Finance told “Vijesti” that the state will have to repay about 405 million euros of debts in 2021, of which 349.51 million are debts to foreigners, while 55.48 million euros is domestic debt.

The Minister of Finance, Milojko Spajić, recently stated that so much money was found in the state treasury that the state would soon go bankrupt, they would linearly reduce salaries by 30%, take very unfavorable loans, resort to mass layoffs and delays in payments.

The total repayment of debts last year was 539.6 million euros, and most of that money was repaid in March in the amount of about 360 million. Before the crown of the crisis, ie in September 2019, the Ministry took on the task of repaying old debts in 2020

“It simply did not happen. Despite all these problems and the perceived high risk of the country, which is evidenced by a very bad credit rating, we managed to ensure the liquidity of public finances by issuing Eurobonds, under the most competitive conditions for countries with a B credit rating. Criticism followed as soon as the Government, by issuing bonds, ensured the financial stability of the state and regular payment of salaries, pensions, social benefits and other obligations, thus bypassing the scenario planned for us – to present ourselves as an incompetent Government that will go bankrupt at the beginning of its term. “, Said Spajić.

To the assessments of individuals from the opposition and the government that it was a secret loan, he replied that the rules of the London Stock Exchange oblige the internal character of these transactions while they last.

EUR 405 million are total debts due for collection this year, of which EUR 349.51 million is debt to foreigners, while EUR 55.48 million is domestic debt.

“However, upon completion – all documents are completely public and available to everyone for inspection, which is why the indebtedness cannot be characterized as secret on any grounds. We have already submitted the complete documentation to the Assembly and the NGO sector several times. It is not impossible for individuals to project what they would try to be in my place, but in public bonds issued on the London Stock Exchange, the chance of corruption is practically zero. It is important not only for this, but also for all future governments that will be under pressure to be financed in the same way, and not with the help of private dealers “, said Spajić.

The Committee on Economy, Finance and Budget has scheduled a control hearing for Spajic on March 17 regarding the issue of Eurobonds of 750 million euros.

Milojko Arsić, a professor at the Faculty of Economics at the University of Belgrade, previously told “Vijesti” that it would be disastrous for the functioning of the economy and society if the state failed to regularly settle its loan obligations, because that would mean that the state went bankrupt.