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Serbia's external debt reaches EUR 17.5 bln

BELGRADE, Jan 12 (Hina) - Serbia plans to borrow about EUR 5 billion this year, although its external debt is EUR 17.5 billion and the foreign liabilities of the state and the economy total EUR 25.54 billion, Belgrade's press reported on Saturday.

Citing economists, Blic daily said the budget deficit was the main reason for the growth of the external debt and that borrowing was inevitable as long as the country spent more than the economy produced.

Blic said Serbia's debt exceeded 60 per cent of GDP.

Economists said Serbia must carry out structural reforms or it would face bankruptcy within a year or two.

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