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FinObservatory

Chinese overseas lending / SRB

Serbia: debt owed to China

In 2021, Serbia is estimated to have owed China $2.72bn, equal to 4.1% of its GDP, which ranks it 37 of 126 borrowers in the panel by dollars owed. The estimated stock peaked at $2.72bn in 2021.

$2.72bn
Estimated total, 2021
rank 37 of 126
4.1%
Percent of GDP
2021
$2.27bn
Public and publicly guaranteed
2021
$443m
Private non-guaranteed
16.3% of external

The estimated stock, 2000 to 2021

The largest single-year move in the estimated stock is 2019, when it rose by $499m.

Public and publicly guaranteedPrivate non-guaranteedPBoC swap drawings

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending. Selection: estimated stock owed to China by Serbia, by year and instrument, 2000 to 2021. Zeros are estimated zeros (no known loans outstanding), not missing values. Methodology

Against what Serbia reports owing to all creditors

Serbia reported $42.01bn of total external debt to all creditors in 2021, of which $21.46bn is public and publicly guaranteed. The China estimate is 6.5% of the reported external total and 10.6% of the reported public and guaranteed stock. These are ratios of two different measurements, one estimated and one borrower-reported, and they are not a share of a single consistent total.

Measure, 2021Estimated, owed ChinaReported, all creditorsRatio, %
Total external debt$2.72bn$42.01bn6.5%
Public and publicly guaranteed$2.27bn$21.46bn10.6%

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending (estimated stocks), and World Bank International Debt Statistics, borrower-reported via the Debtor Reporting System (all-creditor stocks). Selection: estimated external and PPG stock owed to China in 2021 against Serbia's reported DT.DOD.DECT.CD and DT.DOD.DPPG.CD for the same year. Drawn swap balances are excluded from the estimated column: they are a central-bank liability the Debtor Reporting System's long-term-debt concepts do not carry. Methodology

Chinese restructurings involving Serbia

2 deals recorded between Serbia and Chinese state creditors. These are context, not accounting: the source records face-value reduction as a flag rather than a magnitude, so no haircut percentage exists for them, and nothing here is netted off the estimated stock above.

2009Face Value Reductionface-value reduction

Creditor: Multiple

China cancels and reschedules several outstanding debts of Serbia, incl. claims of SAFE on the National Bank of Serbia, claims by China Ex-Im Bank on state-owned Serbian banks (with sovereign guarantees) and claims by China Ex-Im Bank on the central government. All of these debts date back to 1999, when Chinese entities provided large financial support to Serbia.

AidData 2.0

2003Face Value Reductionface-value reduction

Creditor: Sinochem

In 2003, Sinochem International and Naftna Industrija Srbije (both SOEs) signed a debt relief agreement. The agreement cancelled 70 mn USD in outstanding payment obligations and rescheduled the remaining 196 mn USD in debt to be repayable in 16 semi-annual installments of approximately $14.2 million over an eight year period from June 30, 2004 to December 31, 2011. The interest rate on these outstanding obligations were reduced from 4.4% to LIBOR plus a 0.7% margin.

AidData 2.0

Source: Horn, Reinhart and Trebesch, Hidden Defaults (World Bank Policy Research Working Paper 9925). Selection: every recorded restructuring agreement between Serbia and a Chinese state creditor. Face-value reduction is a 0/1 flag in the source, not a percentage; the badge appears only where the source sets it. Methodology