Japan offers loan to Railways of Serbia - €900m

Government of Japan had offered loan of €900m to Serbia for modernization of railways, general director of Railways of Serbia, Milanko Šarančić, announced.

He said that the deadline for repayment of credit was 50 years, interest rate was 0.2 – 1.65% on annual basis and the first installment should be paid 10 years after the loan was obtained.

The loan is intended for realization of several projects along the railway track on Corridor 10, the plans for which have already been prepared by the Railways and represented to Japanese investors.

According to his words, the overhaul will be carried out on railroad tracks on Corridor 10, which will enable moving of trains at speed of 120 km/h and installation of the second gage along the entire route. The projects for construction and modernization of cargo terminals on railway stations in Belgrade, Novi Sad, Niš and another 15 cities in Serbia had been prepared, stated Šarančić and added that terminal in Belgrade would cost €91m.

General director of Railways of Serbia said that the credit would also be used for installation of the second gage along Corridor 10 through Serbia.