People’s Party: As of July 7, Serbia’s Debt Will Go up by EUR769 Million

Vladimir Kovacevic (BETAPHOTO/PEOPLE'S PARTY/MO)

Vladimir Kovacevic, a member of the People’s Party Presidency, has said that on July 7 the Serbian Parliament members will debate Serbia’s borrowing of additional EUR769 million, the amount that will increase the country’s EUR30 billion public debt by 2.56 percent.

“The state cannot pay back the debts created by such rash borrowing. This is quite clear to anyone who has ever taken a bank loan and knows how hard it is to pay it back. The citizens are the ones repaying what the state is borrowing through higher taxes and prices, and they will be unable to shoulder this growing burden,” Kovacevic said according to a People’s Party press release.

Kovacevic also said that a deep economic crisis lies ahead of Serbia because almost all prices are going up, citing those of bread, cooking oil, gas, electricity, cigarettes, and the RTS public service subscription fee as examples.

He recalled that Finance Minister Sinisa Mali had acquainted the public with seven draft laws which, according to the minister, “will ensure the further speedy growth and development of the Serbian economy.”

“These laws, unfortunately, will only provide for additional indebtedness, burdening the current generation, but also our children. I do not agree with Mali that you can ensure progress by borrowing, and even less that [Serbia] can reach an illusory dream of six-percent economic growth by the end of the year,” Kovacevic said.