Serbian government asks UAE for a 1 bln loan

The Serbian government intends to ask the Fund for the development of Abu Dhabi for a loan of about a 1 billion US dollars for budget support, with an interest rate of 2.25 percent per year.

The maturity period of the loan is 10 years, including a grace period of five years, while the repayment period is five years.

The draft law on Ratification of the Loan Agreement for the loan Serbia will take from the United Arab Emirates was submitted to the Parliament of Serbia and will be on agenda of the session scheduled for 25 October.

The loan agreement was signed on 4 October this year, and in the name of the Government signed by the First Deputy Prime Minister and Foreign Minister Ivica Dacic.

The agreement stipulates that the Government of Serbia takes loan from the Development of Abu Dhabi worth 3,367 billion UAE drhams (about one billion US dollars) and that it is repaid in five installments of up to approximately $200 million, at an interval of at least six months.

The goal of the loan, as said, is support to the economic development of Serbia by reducing financing costs, improving economic situation in the country and the contribution of the planned development.

In the explanation of the new loan the Serbian government has stated that the Law on Budget for 2016 envisages direct debit of Serbia in the amount of two billion dollars with the Government of the Emirate of Abu Dhabi.

(InSerbia, 16.10.2016)

https://inserbia.info/today/2016/10/serbia-to-borrow-1-billion-from-the-united-arab-emirates/

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