[ad_1]
Deputy Chairman of the People’s Party and MP Miroslav Aleksić stated that the Aleksandar Vučić government indebted all citizens for another two billion euros at very unfavorable interest rates, denying all claims about the growth of the Serbian economy and demonstrates that Serbia is slipping into debt slavery as a result of improper economic policy. that has been going on for the past eight years.
“Public debt has risen to 26.5 billion euros with this loan and is convincingly the largest in the past 20 years. The sale of government bonds on the London Stock Exchange is a further long-term hit for citizens’ pockets, Because the country’s external debt, which is growing rapidly, will have “Serbia rapidly approaching the ranks of highly indebted states,” Aleksic said.
Aleksic noted that public debt began to grow even before the crisis caused by the coronavirus epidemic, and that in 2019 it increased by one billion euros compared to 2018.
“With new debts motivated exclusively by political reasons, this year the debt exceeds 60 percent of the gross domestic product, without the possibility of stopping that trajectory in the coming years,” said Aleksić.
Aleksic stated that it is economically and logically inexplicable that the state indebted its citizens in the long term for two billion euros increased by interest, and at the same time for demagogic reasons distributes short-term and unintended aid of 100 euros each, and added that the total savings from the reduction of pensions In the previous three years, amounted to 480 million euros, and the payment of 100 euros will amount to a total of more than 500 million euros.
The Popular Party demands that the Ministry of Finance finally announce the exact amount of Serbia’s total external debt, and not only manipulate the due claims of foreign creditors, because it creates the illusion of a moderate external debt, and the reality is that the Serbia’s total debt is high and seriously approaching. GDP, that is, is rapidly threatening to bring Serbia into the ranks of highly indebted countries, Aleksić said.
Aleksic added that the Serbian government bonds will be listed on the London Stock Exchange with a maturity of seven years and an interest rate of 3,375 percent.
“The statement by the Ministry of Finance that Serbia borrowed at a favorable interest rate is not true, because the loan at a rate of 3,375 is far from favorable. Last year, Croatia borrowed at a rate of 1.25 percent, “Aleksić said.
“At the same time, it is clear that the country’s rapid indebtedness, which has been occurring since 2012, has not brought significant economic growth to domestic GDP, which averages eight percent annually over the entire eight-year period. Economic inefficiency of the internal economic model based on intensive loans is obvious, and the creation of debts with international creditors that will have to be paid by generations of Serbian citizens, “Aleksic concluded.
[ad_2]
