Loan of 10m EUR to Privredna banka Belgrade

European Bank for Rehabilitation and Development (EBRD) approved credit to Privredna Banka Belgrade (PBB) in September 11, 2007, in amount of 10m EUR, as a support to strengthening of the mortgage loans market in Serbia.

Contract on approval of loan was signed in Belgrade-based hotel "Hyatt" by PR Manager of EBRD, Žan Mark Piteršmit, and President of Executive Board of PBB Čedo Petrović.

Piteršmit said to the press that it was long-term loan and technical assistance to Serbian bank. The aim is that that bank be prepared to manage risks in the procedures for approval of mortgage loans for procurement, construction and adaptation of apartments.

According to his words, EBRD approved about 60m EUR to Serbian market in the past seven years as a support for mortgage loans, and he specified that about 1,500 loans would be approved on the basis of that aid.

Petrović said that EBRD's loan would be used for approval of mortgage loans for procurement and adaptation of apartments with repayment period of at least of 10 years and interest rate that will be at the level of the average interest rate on Serbian banking market.