Serbia spent 5.17 billion euros on public debt repayment in 2025

Throughout 2025, the Republic of Serbia allocated a total of 607.49 billion dinars (5.17 billion euros) for servicing public debt at the central government level. The money from the budget was spent on debt principal repayment, but also on the accompanying costs of interest, commissions and other expenses that accompany state borrowing.

Total expenditures for debt principal repayment at the central government level in the observed period amounted to 420.62 billion dinars (3.58 billion euros). The largest part of these funds was spent on debt repayment based on direct state obligations, while a smaller part was directed at guaranteed debts.

In addition to the debt repayment itself, the state allocated an additional 186.87 billion dinars (1.59 billion euros) for interest, discounts and commissions, which speaks of the total fiscal burden that servicing the due debt represented for the budget throughout the past year.

When looking exclusively at the direct liabilities of the Republic of Serbia, 395 billion dinars (EUR 3.36 billion) were allocated for the repayment of the principal. The interest and discount costs for these liabilities reached 157.09 billion dinars (EUR 1.34 billion). Within the framework of the repayment of the external debt, the greatest pressure in terms of interest came from the government Eurobonds, for which 35.09 billion dinars (about EUR 300 million) were paid. Also, servicing the liabilities to the International Monetary Fund cost the state 9.46 billion dinars (EUR 80 million).

Difference in the costs of domestic and external debts

Payments on the basis of direct domestic debt were dominant in terms of the principal, where 229.10 billion dinars (EUR 1.95 billion) were paid for government securities on the domestic market. On the other hand, interest on external debt was significantly more expensive than the internal one and amounted to 92.42 billion dinars (EUR 790 million).

Comparing these data, it is clear that liabilities to foreign creditors and the international capital market carried a higher interest burden than borrowing from domestic investors and banks, where interest amounted to 64.67 billion dinars (EUR 550 million).

Indirect liabilities and guaranteed debts

The state’s liabilities related to debts for which the Republic of Serbia provided guarantees to “other entities” (large public enterprises) amounted to 25.61 billion dinars (EUR 220 million) in terms of principal. Interest expenses for these purposes amounted to an additional 4.78 billion dinars (EUR 40 million).

The largest part of domestic guaranteed liabilities related to loans with commercial banks, while external guarantees were dominated by liabilities to institutions such as the European Bank for Reconstruction and Development and the European Investment Bank.

public debt of Serbia

servicing public debt of Serbia