New aid for Serbian budget in autumn - World Bank took approval of loan of 200m USD in consideration

- The World Bank plans to approve the loan of 200m USD to Serbia in autumn, as the budget aid for strengthening private and finance sector - Simon Grey, the Head of the WB's Office in Serbia, said today (July 13, 2009).

He said at the press conference in the Government of Serbia that the conditions for provision of support to private sector were: shorter time for founding companies, shorter deadlines for issuing building permits and bankruptcy proceedings, as well as aid to finance sector during the crisis.

- When it comes to support to public sector, the condition is that the changes be introduced in the budget system - said Grey and added that "it is necessary that we apply international accounting standards in public sector, improve public procurement procedures and strengthen National Audit Institution".

- All our funds are now directed to "Corridor 10" and budget support because it is clear that Serbia is asking for that now, at the time of the international crisis - said Grey.

The World Bank approved the loan of 50m USD to Serbia in March 2008 as a support to the budget. The repayment period is 20 years, grace period is eight years, while annual interest rate equals six-month libor.