Serbian Borrowing Costs Drop Below 10% First Time Since 2008

Serbia’s borrowing costs dropped below 10 percent for the first time since 2008 as the government raised dinars through three-month Treasury bills.

The government paid an average of 9.80 percent to borrow 3 billion dinars ($36 million) at an auction today, according to the Serbian Debt Management Agency’s e-mailed statement. Investors’ bids amounted to 6.27 billion dinars.

Serbia last raised three-month debt at 9.9 percent in December 2008, following two years of cheap borrowing, which bottomed out at 4.20 percent in May 2008, according to central bank data.

The Balkan nation is paying nearly 10 times more than neighboring Croatia, which paid 1 percent for three-month kuna funds. Serbia’s northern neighbor Hungary paid 5.28 percent on three-month T-bills on Feb. 12, according to data compiled by Bloomberg.

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