Agreement on Abu Dhabi loan of USD 1 billion authorized

The National Assembly of Serbia has confirmed several financial agreements and contracts, among which are the contract on the loan for the support to the budget and the continuation of fiscal consolidation in the amount of USD 1 billion between the Government of Serbia and the Abu Dhabi Fund for Development.

Minister of Finance Dusan Vujovic earlier said that it was a favorable loan with an interest rate of 2.25%.

– This is a loan to be withdrawn in five transactions. The funds are to be made available before the year ends and they would help pay off the loans taken in previous five to six years – Vujovic said and added that the repayment would be carried out between 2021 and 2026.

– Withdrawals of EUR 200 million have been agreed here. Since the money is meant to support the budget, it can be utilized for all legitimate budget expenditures, including repaying interest, the principal amount, including early repayment of some loans – Vujovic said earlier at the Assembly.

When it comes to the apex loan, Vujovic says that it is meant for commercial banks to finance the development of small and medium enterprises and for the state to lower the costs of such loans.

– It enables SMEs to take out loans under favorable conditions – the minister pointed out.

He added that the World Bank's loan of EUR 69 million pertained to improving the public administration and that the conditions were extremely favorable. The interest rate is 0.71%, the grace period is five years, and the repayment period is 12 years.

The loan of the European Council of EUR 17 million is meant to finance the Kragujevac prison.

Narodna skupština Republike Srbije

Vlada Republike Srbije

Ministarstvo finansija Republike Srbije

Svetska Banka-WB Beograd

Savet Evrope Beograd

Abu Dhabi Fund for Development

Dusan Vujovic

UAE loan

European Council

Kragujevac prison

Abu Dhabi