Law on takeover of Srbijagas' public debt adopted

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The Assembly of Serbia has adopted today the Law on takeover of debts of Srbijagas towards NIS totaling almost RSD 25 billion and turning these debts into public debt.

In line with the Law, Serbia takes over debts totaling a bit more than RSD 23 billion with the balance as is November 17, 2015.

- It is about taking over of old debts which will be reprogrammed, partially paid this year and debts reprogrammed in five equal installments will be paid until May 2018, it will be six-months installments – the minister of finance, Dusan Vujovic said during assembly discussion.

Agreement on loan between Serbia and the International Bank for reconstruction and development for development of competitiveness increase of employment in Serbia, where EUR 89 m will be taken for the project with a grace period of 10 years was also signed. Loan duration is 25 years and interest rate is euribor plus 0,73%.

The Assembly supported providing guarantees of Serbia to Societe General bank Srbija ad Beograd, for settling debts of Srbijagas, totaling EUR 20 m, based on the contract on long-term loan for construction of distribution gas pipeline Aleksandrovac-Brus-Kopaonik-Raška-Novi Pazar-Tutin.