Serbia will continue to pay Tito’s debt until 2041
Serbian taxpayers will continue to pay Tito’s debts for another 20 years. The last installments of the loans that Serbia took out as a republic in the 1970s and 1980s are due in 2041, and their total amount is 1.5 billion euros.
The 30- and 40-year debts will be a noose around Serbia’s neck for years to come, writes the daily Blic.
They will only be repaid when today’s young generation reaches their 50s, 60 years after obtaining the same loans when Josip Broz Tito was Yugoslav president.
By the end of 2022, Serbia will have to pay exactly 241.8 million euros for loans taken out during the period of the former Yugoslavia. He will have to settle debts to the Paris Club, the World Bank and Kuwait, the last installments being due in 20 years.
As confirmed by the National Bank of Serbia, the last tranche of loans from the Paris Creditors’ Club, to which the country owes a total of 741 million euros, is due in 2041.
* Paris Creditors Club – €740.94 million (last installment due in 2041)
* World Bank – Loan A – €187.44 million (last installment due in 2031)
* World Bank – Loan B – €356.19 million (last installment due in 2031)
* Government of Kuwait (reprogramming) – €213.42 million (last installment due in 2034).
During the 1970s and 1980s, Serbia borrowed a total of €8.8 billion.
The money was spent on economic measures (stimulating consumption and pensions). Until 1978, Serbia had little debt.
Serbia’s biggest creditor is the Paris Club, from which Serbia borrowed a total of four billion euros 40 years ago. Second to the World Bank and the subsidiary of the IBRD.
By Friday, Serbia must pay 10 million euros to the Kuwaiti government in respect of its debt.
(Vecernje Novosti, 18.01.2022)
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