Government of Serbia approved loan to "Jat Airways" - 10m EUR for normal operations

Government of Serbia has made the decision today (February 5, 2009) to approve the loan of 10m EUR to "Jat Airways" in order to make it possible for that airliner to function normally.

The Deputy Prime Minister and Minister of Economy of Regional Development of Serbia, Mlađan Dinkić, has explained that 5m EUR will be used for investments, while the rest will be spent on financing of social program that anticipates payment of severance pays for voluntary leave of workers of "Jat" in amount of 300 EUR per year of work.

- "Jat" is supposed to return the loan to the Government of Serbia until the end of the year, and the guarantee that the loan will be returned is the property of that company - he added.

Dinkić said that, once that loan was repaid, the Government of Serbia would give the guarantee to "Jat" for purchase of four airplanes on leasing.

According to his words, if "Jat" does not repay the loan by the end of the year, the property of the company will be sold, and the budget will be settled, because the loan will be approved from the budget.