In December, the state treasury disbursed over 66.5 million euros to both domestic and international financial institutions for the repayment of loan obligations, with more than 27 million euros allocated for interest, according to the Action for Social Justice (ASP).

According to the NGO, of the total amount paid in December, approximately 36.6 million euros were directed towards the repayment of loan principals to various creditors, while the remaining funds were utilized for related banking services and fees.

The ASP stated, “For the last fifteen years, the nation has been trapped in a continuous cycle of borrowing, with loans being refinanced for years and debt levels rising. Meanwhile, the state treasury faces relentless pressure from an ever-increasing workforce and their irresponsible use of public funds, as well as immense expenses for the costliest medicines, health services, infrastructure, and capital projects.”

They asserted that no administration has shown the willingness to address the vast spending of public funds or to dismantle monopolies and corrupt practices.

“Currently, the budget for this year has not been approved due to objections from the opposition, who are disrupting parliamentary proceedings over a dispute concerning the retirement of a Constitutional Court judge, recognized as a defender of state property and legal interests in the Limenka case. This issue has cost taxpayers nearly ten million euros, which ended up in Aco Đukanović’s hands,” the ASP pointed out.

They reminded that a new installment for a loan from the Chinese Exim Bank is due in January, which was taken to finance the Smokovac-Mateševo highway section, noted as one of the most expensive in Europe. Additionally, in April, the principal payment of a half-billion Eurobond is also expected.

The ASP indicated, “This year, repayments of over 820 million euros are anticipated. Of this total, 159 million euros is earmarked solely for interest payments—147 million to non-residents and the remainder to residents.”

They highlighted that for several consecutive years, annual interest payments have surpassed the significant threshold of 100 million euros, while the country is deprived of even the most fundamental social institutions in numerous cities, painting a stark picture of an extremely impoverished society.

“Conversely, the figures from December reveal substantial expenses from budget reserves within the state treasury, estimated at a minimum of 25 million euros, as one transaction remains classified, preventing the exact payment amount from being disclosed,” the ASP noted.

They further mentioned that various forms of aid have disbursed over 200,000 euros by resolutions of the budget commission, with a similar amount allocated for disaster relief, while payments authorized by individual ministries have reached millions.

“Last year’s budget revision set aside 70.7 million euros for the budget reserve, highlighting that the December expenditures of at least 25 million represent one-third of the annual allotment for this category, expended in just one month,” remarked the ASP.

The projected budget reserve for this year is set at 48.3 million euros.

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