On 7 April 2020 the Government of the Republic of Serbia (the “Government”) adopted the Decree on Additional Borrowing During the State of Emergency Caused by the COVID-19 Disease due to the SARS-CoV-2 Virus by Taking Loans, Issuing Government Securities on the Domestic and International Financial Markets and Providing Guarantees of the Republic of Serbia (the “Decree”). The Decree came into force on the day of publishing in “Official Gazette of the Republic of Serbia” on 07 April 2020.

The Decree provides the terms for additional borrowing of the Government of Serbia over the limit determined in the Article 2 of the 2020 Budget Law (the “Budget Law”) during the state of emergency caused by the COVID-19 disease due to the SARS-CoV-2 virus.

The Article 1 of the Decree stipulates that the procedure for the additional borrowing may be initiated for the following purposes:

  • financing the budget deficit;
  • maintaining current liquidity; as well as
  • obtaining funds for providing necessary financial support and implementing measures to mitigate economic effects of the COVID-19 pandemic.

The Government may initiate the procedure of additional borrowing in one of the following manners:

  • by taking loans;
  • by issuing government securities on the domestic and international financial markets; as well as
  • by providing guarantees of the Republic of Serbia.


Borrowing of funds in one of the above provided manners is allowed to be executed in the amounts higher than those determined by the Budget Law.

Article 2 of the Law stipulates that the total amount of funds for financing of the budget deficit must not exceed the amount of RSD 605 billion.

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