VUJOVIC: Favorable loan from IBRD for restructuring companies

(Dusan Vujovic) Serbian Finance Minister Dusan Vujovic said today that the loan of the International Bank for Reconstruction and Development (IBRD) would make it possible to postpone the financial burden of company restructuring process for five to seven years as well as to bring the companies undergoing restructuring to a state in which they are capable of operating in the market permanently.
- This loan, approved under very favorable terms, makes it possible to first respond to all structural issues related to privatization and bankruptcy and then to move the financial burden five to seven years into the future - Vujovic said in the Serbian Parliament while explaining the loan agreement MPs are supposed to adopt.
Namely, according to the agreement on the IBRD's SOE-DPL loan for developing and restructuring companies, Serbia shall take out a loan of EUR 88.3 million from the International Bank for Reconstruction and Development. Loan repayment period is 20 years, while the grace period is eight years. Interest rate equals the six-month Euribor plus a variable margin that is currently at 0.6%.
Vujovic stressed that the loan would also be used to support and cover one-off expenses of company restructuring.

Ministarstvo finansija Republike Srbije

The World Bank USA

Narodna skupština Republike Srbije

Dusan Vujovic

International Bank for Reconstruction and Development

IBRD

restructuring