Vujovic: We have obtained $1bln loan from UAE

Serbian Finance Minister Dusan Vujovic said that Serbia was granted a loan from the Abu Dhabi Development Fund on extremely favourable terms that will be used as financial boost for the Serbian budget and the support to further fiscal consolidation.

Speaking at the Serbian Parliament, the Finance Minister also said that the loan would amount to $1 bln with a 2.25% interest rate and now other, adding that the loan was much better than the similar ones Serbia could have obtained on the international financial market.

Vujovic went on to say that the loan would be paid back in six equal monthly installments in the period from 2021 to 2026, and underlined that the loan would help Serbia to cover the upcoming financial obligations and loans that had been obtained in the last five to six years.

Vujovic also spoke about five other loans that the Serbian Parliament has to ratify. Speaking about the annex to the loan agreement with the European Investment Bank, he explained the funds from that loan would be spent as support to commercial banks with a view of them being able to provide even better SME loans.

Another loan comes from the World Bank and it amounts to 69 million EUR. This money will be spent on improving public administration. The Minister pointed out that the terms and conditions of that loan were also quite favourable – 0.71% annual interest rate, 5-year-grace-period and 12 year payment period.

Serbia also asked the Council of Europe for a 17-mln-EUR loan to be spent on funding the prison in Kragujevac, or improving it to be in line with the European standards.

Another loan from the Council of Europe, in the amount of 8 mln EUR, will be used to repair the damage from the Kraljevo earthquake six years ago and to build accommodation for socially vulnerable groups.

(eKapija, 26.10.2016)

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