FEFA professor at the Faculty of Belgrade in Belgrade, Goran Radosavljevic, said today that he did not know what the green bonds announced by the Minister of Finance of Serbia for financing environmental projects meant, but that the fact was that the state was borrowing for “everything and everything”.
“Bonds are bonds, and if they are issued, the country borrows whether they are ordinary or green, and the public debt of Serbia is growing rapidly, and this year it will exceed the figure of 30 billion euros for the first time,” Radosavljevic told the Beta agency.
Minister of Finance Siniša Mali said a few days ago that the Government of Serbia is committed to providing the most favorable funds for green projects from new sources of financing, such as the very current green bond market, and that these are projects related to renewable energy, energy efficiency. pollution control and prevention, biodiversity conservation, clean transport, sustainable water and wastewater management, adaptation to climate change, green buildings and the like.
Radosavljevic said that Serbia’s budget deficit is high and that the gross domestic product (GDP) is “roving” and that we should not just look at the share of debt in GDP because the example of Montenegro shows that when the economy stopped, the share of public debt in GDP was about 80 percent jumped to over 100 percent.
“A lot is being invested in Serbia, and that is good provided that the started projects are completed, and not like in Borca, where the construction of the sewerage system started in the last election cycle, due to which the country borrowed 50 million euros, and the network is not finished yet,” he said. is Radosavljevic.
He pointed out that the government in Serbia did not make a list of priorities, to build infrastructure without a tender, from Belgrade on the water, the Moravian Corridor to the subway, which will cost six billion euros, which is the value of six budgets of the capital or almost 15% of Serbia’s GDP.
Radosavljevic said that he saw no other explanation for such high prices for infrastructure construction, except that commissions were increased by 100 percent because, for example, the Moravian Corridor, according to initial estimates, should have cost around 300 million euros to reach 800 million euros.
“Ecology is a big problem in Serbia, and if the state borrows for projects in that sphere, priority should be made, and I think that the priority is what to do with thermal power plants, which are the biggest polluters,” said Radosavljevic.
The owner of the brokerage house Jorgić, broker Branislav Jorgić, said that the state can, even without new borrowing, solve certain environmental problems with non-financial measures, such as pollution with five packaging.
“In the EU countries, there is an organized purchase of five packages, and that problem is being solved in a non-financial way. Green bonds for ecological purposes are a nice expression for the new borrowing of the state,” said Jorgić.
According to him, the state should create conditions for private individuals to invest on their own without subsidies, instead of borrowing for some projects on their own.
“Green bonds will be treated on the international market as ordinary bonds and will arouse the interest of investors depending on the yield and interest they bring,” said Jorgić.
He pointed out that a small number of enthusiasts will decide to buy green bonds of Serbia out of love for the environment if there is no financial benefit from that.