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Lack of transparency characterizes another process in Serbia: the National Bank of Serbia bought corporate bonds from the state-owned company Telekom Srbija. The daily “Danas” broadcast its conclusions that first the bonds were bought by four commercial banks and immediately afterwards the same securities were bought by the National Bank of Serbia. Although the central bank told H1 that everything was in line with market conditions, economists estimate that this transaction can qualify as state aid to Telekom Srbija.
Debts tripled in the last two years and a deficit in Telecom’s cash register of 1.15 billion euros – led the largest state-owned telecommunications company to issue corporate bonds worth 200 million euros.
Banks bought debt securities. The five sold part of the bonds to the National Bank shortly after the purchase. The NBS confirmed the transaction for N1, but the public does not know at what price the central bank bought the bonds.
“The National Bank of Serbia made a decision in May that allows them to make such a transaction, but the question is whether that decision is economically justified … In this way, the National Bank can include in its balance sheets bonds that are not worth as much or later for some time it turns out not to be worth so much … Which would mean a loss in the balance of the National Bank ”, explains the journalist of the newspaper Danas and author of the text Miloš Obradović.
Apart from the price, the National Bank of Serbia does not specify exactly how many debt securities it bought. They say that, as announced, it is not about half of the transmissions, but rather “closer to a third.”
“The National Bank of Serbia did not buy the maximum allowed amount of Telekom corporate bonds, which is limited by two criteria: 70% of the total issuance or 11 billion dinars of exposure to an issuer, indicating that there was a Sufficient demand from banks as investors for this bond. ” she said National Bank in response N1.
Economic analysts have no dilemma, they say: it is de facto state aid.
However, FEFA professor Goran Radosavljevic explains that such state aid is not illegal at the moment, because the European Union “lowered” control of state aid during the crisis caused by the coronavirus. The H1 interlocutor adds that the NBS did not accidentally “go ahead” this transaction, as he says, as a measure to combat the covid crisis.
“It was known in advance that some banks would buy it, it was probably prepared in advance, that the NBS would buy 50% of what it could and, in essence, the story is closed … Telecom obtained money from the state indirectly, it will probably get some other state companies like SDPR and some others, and that is the channel of a state aid that is now activated under the auspices of kovid ”, said Radosavljevic.
A similar practice – that the central bank buys bonds of state companies – applies in neighboring Hungary, with little difference compared to Serbia – the process is completely transparent.
The brokers estimate that it is not clear how much the telecommunications bonds are really worth.
“I think it would be much better if I did a public issue of bonds, in the sense that anyone could buy in the financial market, that those bonds were listed on the Belgrade Stock Exchange and the price was set there. In that case , the market would give its judgment on the success of Telecom’s business, “says Branislav Jorgić, broker.
It has been known for a long time that they are bonds issued to Telekom SrbijaAccording to what they announced, they financed commercial activities and refinanced debts, which increased due to the purchase of cable operators, according to experts, at prices higher than those of the market. From Telekom on the whole case of the purchase of bonds, not a word …
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