CLS: Belgrade on brink of financial collapse, transporters considering stopping work

The City of Belgrade has failed to settle its payment obligations for services rendered under a public-private partnership to transport operators, members of the "BG Bus Prevoz" consortium, for the past four months. Consequently, there is a real possibility of a partial suspension of public transport if the situation is not resolved urgently, stated Nikola Jovanovic, Executive Director of the Center for Local Self-Government (CLS).

– Before the elections, the Mayor's office urged private transport operators to be patient and “not add fuel to the fire.” Now, they are being asked to wait even longer, pending the City potentially receiving additional funds from the Republic. Such an approach is highly irresponsible and places the residents of Belgrade at serious risk of a public transport paralysis – said Jovanovic.

He assessed that the outstanding debts owed to private transport operators, suppliers of public utility companies and employees of the public transport operator (GSP) served as a clear indicator of a deep financial crisis in the capital.

– All of this suggests that the city's finances are no longer under control. It is necessary to consider placing Belgrade under compulsory administration to halt the further collapse of the system and protect the public interest – concluded Jovanovic.

Center for Local Self Government

BG Bus prevoz

City of Belgrade

Belgrade public transport

public transport

debts

compulsory administration