Serbia's indebtedness grows - for one own 1.69 borrowed Dinars

The level of total indebtedness increased from 1.56 in 2019 to 1.69 in 2020, which means that an entrepreneur uses 1.69 Dinars of borrowed money for one Dinar of own capital.

With more intensive borrowing, the total liabilities of companies increased by 10.4 percent and, according to APR, to hit 10,758.8 billion Dinars, while the total loss increased by 8.5 percent, reaching 3,818.5 billion Dinars.

"The financial capacities of the economy increased last year, but the total losses also went up. The economy borrowed more to overcome the difficulties in business, and the problem with maintaining liquidity, which was present in previous years, was slightly alleviated last year," Ruzica Stamenkovic, of the Register of Financial Reports in APR, said.

She added that when the coronavirus pandemic significantly increased the business risks, Serbia's economy managed to record profitability and employment, with an increase in financial capacities and liabilities and losses.

The business assets of companies have increased, and their value is 17,178.2 billion Dinars, while the capital has risen to 8,029.5 billion Dinars.

"The analysis of those data also shows that the companies' sources increased by two percent in the past year and reached the value of 6,382.1 billion Dinars," the APR statement said.

The total profit of companies amounts to 433.5 billion Dinars and is higher by 20.7 percent than last year, and the number of employees increased by 43,592 workers.

(1€ = 117.44 RSD)