Serbia: Power utility company Elektroprivreda Srbije EPS owes 800 MEUR, News Serbia Energy
From 2008th to 2013th“Electric Power Industry of Serbia” borrowed 220 MEUR and increased total debt to 800 MEUR. Thus, EPS is rapidly getting closer to national companies that are big debtors like “Srbijagas” (one billion EUR), “Serbian Railways” (one billion EUR), whose loans will return all citizens.
At the same time, EPS, at the request of the Union, approved a loan of 425 EUR to employees in 2012th, or a total of 12, 7 MEUR. And earlier this year they got it, according to the Fiscal Council (FS), more 17- 19, 5 MEU7R.
There is no profit
In EPS told then that it was not a classic loan, but the payment of profit from 2013th, which meant that it would not have to be returned. Along with this information and recent unofficial news that Germany is seriously interested in EPS and they have already negotiated about the strategic partnership, it is increasingly clear that the state will seek the way out of the debts in the foreign capital.
Otherwise, the FS stated that the EPS announced that it made a profit, but then had no money to pay part of the profits to the budget. The Fiscal Council reported that the EPS indebtedness increased from 580 to 800 MEUR.
– EPS had to borrow because it was not able to fully funded even basic maintenance of production facilitiesof collected service. Long-term liabilities at the end of 2013thwere 560 MEUR, and short term 1 billion EUR, of which 110 MEUR are payable, and EPS illiquidity spills over to other companies – says the Fiscal Council. High debt is not necessarily a problem if the company spendsloans on investment and if it can make them pay. If it cannot, the state budget takes over the loan returnas a guarantee, that is, all citizens. “Srbijagas” could not do it in 2013th, so and the government had to pay 42, 5 MEUR, a guild that this year could be 144 MEUR.
If EPS cannot pay, citizens will pay
Citizens will pay 42, 5 MEUR of”Railways” loan in the next three years. The Fiscal Council reported that EPS has not created a direct cost to the budget, but in the future it is not excluded.
– Borrowing in order to provide liquid funds in 2012thand 2013thshows that there is a possibility of difficulties in repayment of maturing dues from its own funds, and similar happened in “Srbijagas” a few years ago. If the condition worsens, the state should directly pay EPSfinancial dues – state in the Fiscal Council.
“Electric Power Industry of Serbia”,We get into debt due to cold winter and hot summer
In EPS state that,due to the long-term non-economic electricity price,they only cover operating costs, so they are forced to borrow money for large investments.
– In addition to loans for investmentduring 2010-2012,EPS was forced also to borrow on short term in order to overcome the effects of poor weather conditions (extremely cold winter in 2012th and dry summers with low reservoirs), which reduced production and increased imports. At the same time, the outstanding debt of 942 MEUR at the end of 2008thincreased to 1.2 billion EUR at the end of 2013th, making EPS further indebted in order to pay the dues to state, suppliers and customers –state in EPS and add that employeeshave almost return the loan at the end of 2012th and it is also expected the agreement for 2013th.