Belgrade’s public transport company has to borrow 38 billion dinars to survive

The Vice-Chairwoman of the Belgrade branch of the Party of Freedom and Justice (SSP), Ana Gođevac, asked today whether the City Public Transport Company (GSP) Belgrade, which has suffered substantial losses, will enter all of its assets as a collateral for a loan of 38 billion dinars, or whether the city government, whose budget is also in trouble, will provide the guarantee for the payment of this loan and asks for the government’s help.

“GSP plans to take a 38 billion dinar loan. Which bank and under what conditions will give a loan of 38 billion dinars to a company that has suffered financial losses,” Gođevac wonders.

She added that “the way the company is run by appointed SNS members  will drive a nail into its business and drag it into bankruptcy.”

She also said that the loan will be taken for the sole purpose that “Belgrade mayor Alekdandar Šapić and SNS officials can brag about buying new buses”.

“Where does the money of the Belgrade taxpayers go if the city’s budget is 1.6 billion euros and the GSP has to borrow 38 billion dinars? Furthermore, all the reforms that Šapić implemented in public transport have resulted in the income from the GSP’s sale of tickets in Belgrade amounting to only 230 million dinars per month, which is 330 million dinars less than when the old fare collection system was used,” Gođevac warns.

She added that “it is obvious that Šapić’s fare collection system has failed, as is his plan to buy new buses with the revenue generated by the new fare collection system. If the Belgrade government does not resign and stop making such bad decisions for Belgrade, there will be nothing left in the budget,” she concludes.

(Danas, 06.09.2023)

This post is also available in: Italiano

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