GSP Belgrade and EBRD sign agreement on conversion of EUR 15 million debt into dinars

The agreement by which the European Bank for Reconstruction and Development (EBRD) will convert a part of the current loan of GSP Belgrade in the amount of EUR 15 million into dinars was signed today at the Old Palace, Beoinfo reports.

The agreement was signed by Daniel Berg, EBRD Director for Serbia, and Zeljko Milkovic, General Manager of GSP Belgrade, and the signing was attended by Mayor Sinisa Mali.

The mayor pointed out that the arrangement in question, the conversion of euros into dinars, was the first one of its kind and that it was the result of the consolidation of the public finances of the City of Belgrade.

– With today's partial conversion of a part of the EBRD loan to GSP from euros to the local currency, the risk of incurring additional expenses in the form of foreign exchange differences is considerably reduced. This is an important step for us and it will reflect positively on the financial state of the capital of Serbia – Mali said and added that indebtedness in the local currency was being promoted that way, which is a key strategic goal of the Government of Serbia, as well as the National Bank of Serbia.

Berg emphasized that the EBRD was heading the initiative for the development of local currencies and local markets in the countries it invested in.

– Our long-term goal is to aid the development of the company so that it would be able to provide high quality services, while having far less of a need for continued budget support – Berg explained.

Zeljko Milkovic added that the revenues of GSP in dinars and the repayment of the EBRD loan in the same currency would help the company avoid the consequences of the fluctuation of the foreign exchange rate, Beoinfo reports.

– This change will have a positive impact on the financial operations of the company, as well as its operating efficiency, and it will also aid an improvement in services, to the citizens' benefit.

JKP GSP Beograd

EBRD Evropska banka za obnovu i razvoj Beograd

Grad Beograd

GSP Belgrade

European Bank for Reconstruction and Development

EBRD

City of Belgrade

Daniel Berg

Zeljko Milkovic

Sinisa Mali

EBRD loan to GSP

loan to GSP

loan conversion from euros to dinars

GSP Belgrade loan