Serbian economics professor Slobodan Komazec stated today that Serbia's debts amount to 105.3 billion euros and that the country is approaching bankruptcy.

He says that Serbia led by Aleksandar VuçiqThe budget should be destroyed in unnecessary investments such as military equipment and fighter jets, Beta writes, reports KosovaPress.

"The government continues to borrow recklessly to cover truly unnecessary and inefficient investments in 'Rafale', military equipment and similar," concluded Slobodan Komazec.

Komazec told Beta news agency that the state has taken on a huge debt burden, which, as he said, is stifling and financially impeding the development of the economy.

"Uncontrolled borrowing as a hidden process has led to Serbia's huge public and external debt burden. The debt burden that it carries with its debt burden and obligations has increased to over 105 billion euros. The public sector has accumulated external debt to 27.8 billion euros and internal debt to 12.2 billion, a total of 40 billion euros," the professor said.

He added that companies have 18.3 billion euros in debt abroad, and 11 billion in loans from domestic banks, for a total of 29.3 billion euros.

"The population borrows 14.3 billion euros from banks in the country. In addition to these classic debts, there are also other obligations that burden the economy. This includes unpaid VAT of four billion euros, delayed state guarantees issued of 1.1 billion euros, interest on debts of five billion euros, debts in the foreign direct investment system of 10.8 million euros, unpaid 20 billion euros. Total debt obligations amount to 105.3 billion euros," Komazec emphasized, Beta writes.

Asked what the consequences of the large debt obligations will be, Komazeci said that the "uncontrolled" borrowing mechanism, without projects, programs, calculations of effects and control, leads to rapid debt growth, which leads to bankruptcy and insolvency of the state.

"If the gross domestic product in 2024 was 76.4 billion euros, this means that the debt burden amounts to 113 percent of gross domestic product. If other debt obligations (interest and hidden debts) are added, the debt burden amounts to 138 percent of GDP, 28 percent of gross domestic product," Komazec explained.

According to him, uncontrolled borrowing and inefficient use of debt have created a debt trap in which the economy as a whole works only for debt interest.