According to the Directorate for Public Debt, Vranje is the most indebted city in the south of Serbia, with a public debt of 1,18 billion dinars. This puts this city right behind the largest administrative and regional centers in the country.
At the top of the list of the most indebted local governments is Beograd, with a debt of as much as 32,84 billion dinars, doc Novi Sad owes 5,7 billion dinars. Next is the Autonomous Province Vojvodina with 1,29 billion dinars, followed immediately by Vranje, which in terms of debt is ahead of larger cities such as Kragujevac, whose debt amounts to 537,6 million dinars. All other municipalities and cities in Serbia have a significantly lower level of indebtedness, the Rešetka portal reports.
Five billion more in debt than last year
Total public debt local governments in Serbia on December 31, 2025, amounted to 48 billion dinars, which is five billion dinars more than a year earlier. The potential level of debt, based on already contracted debts, reaches as much as 59,6 billion dinars.
More than half of local debt is in foreign currency - 63,6 percent of liabilities are in euros, while the ratio of debt with a fixed interest rate (49,7 percent) is almost equal to debt with a variable interest rate (50,3 percent), which further increases fiscal risks in conditions of an unstable market.
Who are the biggest creditors?
The largest creditor of local self-government units is the European Investment Bank (EIB), which is owed 14,6 billion dinars. They are followed by Bank Inteza with claims of 13,2 billion dinars and Banka Poštanska štedionica, to which the local authorities owe 10,5 billion dinars.
The share of foreign creditors in the total debt is 36,7 percent.
The total public debt of the Republic of Serbia at the end of 2025 was 39,34 billion euros, i.e. 4.614 billion dinars, which is 44,5 percent of the gross domestic product, official data from the Public Debt Administration show.
Source: Grid
