Serbia’s government has ordered a financial restructuring plan for state road operator Putevi Srbije after the company recorded a €192 million net loss and accumulated approximately €193 million in unpaid supplier obligations, increasing pressure on public infrastructure financing.
The decision, published in the Official Gazette, establishes a government working group tasked with developing a new financing model and an operational plan covering at least five years. The initiative follows a substantial increase in state subsidies and aims to address the company’s financial performance, operating costs and outstanding liabilities.
Losses Drive Higher State Subsidies
Putevi Srbije reported a net loss of €192 million in 2025, compared with approximately €97 million in 2024, despite higher motorway toll revenues. Operating revenue reached approximately €530 million, while road maintenance, construction-related services and financing costs continued to weigh on profitability. Supplier liabilities stood at approximately €193 million at the end of 2025, exposing domestic construction and maintenance companies to payment risks.
Under the revised budget, Serbia increased the company’s subsidy allocation from approximately €162 million to €350 million, an additional €188 million. The Fiscal Council had previously questioned the higher support, arguing that subsidies for road companies were insufficiently linked to clearly defined spending priorities.
Government Working Group to Review Financing
The working group is chaired by Miroslav Alempić, acting assistant minister of construction, transport and infrastructure. It includes representatives of the finance, economy and infrastructure ministries, alongside officials from Putevi Srbije. Its responsibilities include reviewing financial performance, existing liabilities, payment arrears and organisational responsibilities. The plan must contain financial projections and a transition strategy covering at least five years.
The government has not announced a completion deadline or approved specific debt-restructuring measures. The process could lead to changes in expenditure controls, contractor payment arrangements, budget financing and the allocation of responsibilities among state institutions.
Contractors and Banks Face Liquidity Risks
Delayed payments from Putevi Srbije can increase working-capital requirements for construction and maintenance companies, particularly smaller contractors with limited access to long-term credit. Commercial banks financing road contractors may also face greater exposure when receivables accumulate. Lenders must consider payment delays, public-sector customer concentration, contractual schedules and borrowers’ reliance on refinancing.
A restructuring programme establishing clearer payment priorities and more predictable cash-flow management could help reduce these risks. Prolonged uncertainty, however, could constrain contractors’ participation in new tenders and their ability to finance equipment and workforce expansion.
Infrastructure Spending and Maintenance Under Review
Serbia’s expanding road network creates long-term maintenance obligations alongside the costs of new construction. Higher toll revenues alone cannot guarantee financial sustainability if maintenance expenditure, supplier liabilities and financing commitments grow faster than available income. Potential reforms include separating investment and maintenance budgets more clearly, strengthening procurement controls and improving long-term expenditure planning.
For infrastructure investors, lenders and contractors, the financial stability of Putevi Srbije remains important to payment reliability throughout the construction supply chain. The increased €350 million subsidy allocation provides additional budget support, while the restructuring process is intended to address the company’s recurring losses and accumulated obligations.
