The problems of liquidity and solvency of the republic of Serbia, Faculty Of Business Economics and Enterprenuership

Miloshevikj, Bratislav and Gavrilovikj, Milan (2015) The problems of liquidity and solvency of the republic of Serbia, Faculty Of Business Economics and Enterprenuership. Economic growth, industrial development and ekonomic groth, part 2.

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Abstract

The indebtedness of an economy abroad is today a significant term. Indebtedness of every economy towards foreign countries, as well as, the amount and structure of imported capital are of strategic long-term economic, financial and political significance. Foreign capital has a stimulating role as the initiator of economic growth, but it can suffocates the national economy with high liabilities (repayments and interest). The operation of foreign capital on domestic savings potential can be seen in two ways: positively, through the increase in the accumulation; negative, the high repayment and interest as well as the unfavorable structure of the use of these funds. The burden of interest burden on national accumulation and contributing to brain a significant part of accumulation abroad. This is evident from year to year. Faster growth of paid interest on external debt of the increase in net national accumulation is especially pronounced in recent years. All of the above are significant and numerous reasons for the selected strategy of economic development must be given much more attention, not only when it comes to the amount of debt, but also its structure and efficiency of use. This paper analyzes the main indicators used for the evaluation of the debt, known as indicators of overall debt. Some of them are related to the composition of the debt, ie, the amount of external and domestic liabilities, fixed, variable rate of liabilities, the amount of short-term, medium-term and long-term debt, as well as indicators of external liquidity and external solvency. These are useful indicators to define the evolution of the debt and ability to pay, they provide certain signals about the worsening or improvement of the situation. Key words: Foreign Capital, Economic Growth, Interest, National Accumulation, Indicators of Overall Debt JEL Classfication: H63, H68, G30 UDC: 336.27(497.11) 338.1(497.11) 339.727.2(497.11)

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Tourism and Hospitality
Depositing User: Mr Bojan Sekulovski
Date Deposited: 11 Dec 2017 12:39
Last Modified: 11 Dec 2017 12:39
URI: http://eprints.uklo.edu.mk/id/eprint/1076

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