Minister of Finance Diana Dragutinovic stated that the increase in Serbia’s foreign debt in the period 2008–2010 was partly a result of the depreciation in the dinar’s exchange rate, which exceeded the inflation rate.

Dragutinovic told the Tanjug news agency that during the same period the state was settling its debts, while the economy was taking new loans from abroad.

As for the IMF report stating that in 2010 Serbia’s foreign debt will reach 77.5% of GDP, Dragutinovic specified that only one third of this sum is state debt, while the remaining portion is the private debt of Serbian companies.

The IMF report also includes the as yet unsettled debt of the former Yugoslavia of over €350 million, of which sum Serbia’s portion is 15% and the rest belongs to the other former Yugoslav republics, Dragutinovic explained.