Serbia's Energy Debt Exceeds 1.2 Billion Euros, IMF Demands Action

Serbia faces mounting pressure from the International Monetary Fund (IMF) to resolve substantial debts owed to its state energy companies, Srbijagas and Elektroprivreda Srbije (EPS). The total outstanding debt has surpassed 143 billion Serbian dinars (approximately 1.2 billion euros), with some arrears dating back years and others continuously accumulating.

The IMF has flagged these uncollected payments as a quasi-fiscal risk, warning that the deficit could ultimately be covered by the Serbian state budget. Monthly reports detailing the largest debtors are published, but payments remain inconsistent. As of May 2026, debts to Srbijagas exceeded 123 billion dinars, while EPS was owed nearly 20 billion dinars for electricity.

Among the most significant debtors for natural gas is Novi Sad-Gas, a municipal enterprise owing 29.3 billion dinars. HIP Azotara, currently in bankruptcy, follows with a debt of 23 billion dinars, and JKP Beogradske elektrane (Belgrade Power Plants) owes over 14 billion dinars. The list of major gas debtors is dominated by companies in bankruptcy and public enterprises, with over 10 public utilities, heating plants, and hospitals among the top 50 debtors.

For electricity, the largest debtors include Železara Smederevo (in bankruptcy) with 6.29 billion dinars, JP PEU Resavica with 2.42 billion dinars, AD Politika with 1.47 billion dinars, and JKP Beogradski vodovod i kanalizacija (Belgrade Waterworks and Sewerage) with 963 million dinars. Notably, EPS recently became the largest shareholder in AD Politika, acquiring a 27.29% stake, raising questions about whether this ownership will ever compensate for the uncollected electricity debt.

Several municipalities and public transport companies, including GSP Beograd, Novi Pazar, Sjenica, and Smederevska Palanka, are also among EPS's top debtors. Alarmingly, 18 of the top 50 EPS debtors are in bankruptcy, liquidation, or undergoing reorganization, collectively owing 10.4 billion dinars. Economist Danilo Šuković stated that any unpaid debts by state enterprises will inevitably be covered by taxpayers, highlighting the direct financial impact on citizens.

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What will not be paid by state enterprises, will be paid from the budget of the Republic of Serbia, meaning citizens will pay.