State takes over RSD 19,3 billion of Air Serbia’s debts

(Photo: Teodora Brnjoš)

Serbia’s public debt will increase for RSD 19,3 billion, the amount of Air Serbia’s debts to be taken over by the state.

The funds will be paid from the budget of Serbia in two installments, until December 31 this year and March 31, 2015.

Air Serbia, a successor of Jat airways, is owned by the Government of Serbia and UAE –based Etihad.

December 11, 2014, the Government of Serbia defined the Program of measures for debts settling of Air Serbia to legal and physical entities on December 31, 2013.

Total sum to be taken over by the government totals RSD 19,3 billion, 2,6 billion referring to debts already covered by Air Serbia.

One part of debts will be serviced by the Republic of Serbia through direct payments to trustees - the Nikola Tesla airport, the Oil Industry of Serbia, the Directorate for Civil navigation, Jat tehnika, Flight control of Serbia and Montenegro - SMATSA, Beogradska banka and Investbanka which have been in bankruptcy and the National Bank of Serbia.