MIHAJLOVIC: Subsidies for companies failing to draw down contracted loans within deadline to be canceled

(Zorana Mihajlovic) Minister of Construction, Transport and Infrastructure Zorana Mihajlovic announced on Friday, February 17, that the subsidies for companies being late with works and failing to draw down contracted loans on time would be canceled.

– Companies financed by foreign credits must file reports on works and drawn down loans each month on the 20th – Mihajlovic said at the press conference.

She said that she would ask for the directors of companies which made three violations in drawing down loans in a year to be relieved of their duties.

Serbia, as the minister said, has contracted loans with China and Russia in the total amount of EUR 2.44 billion, of which EUR 1.44 billion for transport infrastructure.

Mihajlovic said that the works on infrastructural projects being built by Chinese companies were going according to schedule and announced the beginning of the construction of the sections of the Surcin-Obrenovac highway for March 1, as well as the beginning of the modernization of the Belgrade-Budapest railway on the Stara Pazova-Novi Sad section.

The minister said that the practice in the future would be to secure the documentation for a given project before the construction started.

As she said, within the Russian loan for infrastructure of EUR 941 million, together with Serbia's participation, jobs worth EUR 700 million have been contracted so far.

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Zorana Mihajlovic

crediting companies

credits for companies

subsidies for companies

canceling subsidies for companies

loan for transport infrastructure

Chinese loan

Russian loan

Surcin Obrenovac highway

Belgrade Budapest railway

Stara Pazova Novi Sad railway