Decision on EBRD's loan for "Srbijagas" on January 26th

- The European Bank for Reconstruction and Development (EBRD) postponed the approval of the loan of 150m EUR to public company "Srbijagas" until January 26th - people from that bank told "Beta" agency.

EBRD's spokesperson Bojana Todorovska said that the negotiations with "Srbijagas" had not been completed prior to the beginning of the regular meeting of the Board of Directors on January 12th, so that the project had been postponed until January 26th when the next regular meeting would be held.

Ms. Todorovska said that another reason for postponement of the approval of the loan was the fact that the Government of Serbia had not approved the contract on guarantee yet and that the contracts were not in the final phase.

- EBRD is in the final phase to grant 150m EUR to public company "Srbijagas". That means that the project must be submitted to the Board of Directors of EBRD for adoption, which is the last phase in the loan approval cycle - said the bank's spokesperson.

The loan for "Srbijagas", as she explained, represents a project from public sector with the state's guarantee, so that the EBRD's terms are the same as for all other similar projects.

"Srbijagas" should use the EBRD's loan for organizational and financial restructuring of the company, as well as for improvement of management - it is stated on the creditor's website (www.ebrd.com).

According to some earlier announcements, the loan should be used for development of gas pipeline network, connection to the networks of neighboring countries and construction of new underground gas storage.