Several new borrowing bills are currently under consideration in the Serbian Parliament, potentially increasing Serbia’s debt by an additional €2.4 billion.
The most notable and controversial loan is the French credit to finance the purchase of 12 Rafale fighter jets from Dassault Aviation. The total contract value exceeds €2.7 billion, with Serbia receiving a loan of about €1.9 billion to cover 70% of the purchase. Serbia has already made an advance payment of 30% (€823.5 million) from its own funds.
The remaining payments are planned as follows: two installments of 25% (€686.3 million each) and a final 20% (€549 million). Although contract details are mostly confidential, the loan’s interest rate combines a margin of 0.98% per annum with the EURIBOR rate, currently around 2.056%, making the effective interest rate approximately 3.04%.
Economist Aleksandar Stevanović criticized the secrecy surrounding the loan and questioned the strategic value of the defense investment, noting Serbia’s geopolitical position and outdated defense capabilities.
Besides the Rafale loan, Serbia is also borrowing to finance infrastructure and environmental projects:
- A €300 million loan from NLB Komercijalna banka for sections of the Belgrade–Zrenjanin–Novi Sad highway.
- A €153.7 million loan from the International Bank for Reconstruction and Development for green growth development.
These loans, combined with the Rafale financing, contribute significantly to Serbia’s increasing public debt.
