Russian money for budget only - negotiations with Moscow on investment loans discontinued

- The Government of Serbia will withdraw the funds from the agreed Russian loan of 200m USD for the budget support prior to the end of the month - people who work in Nemanjina Street confirmed to Novosti on Wednesday (January 20, 2010). - The interest rate on this loan is currently below 4%, and the agreement on this loan anticipates the possibility of premature repayment without payment of penalties.

When it comes to the second part of "Russian billion", that is, 800m USD worth of investment loans - nothing is happening.

As it is already known to the public, Serbia suggested that the money from the approved quota of 800m USD should be used for financing of several important infrastructure projects. According to the plan, 200m USD should be invested in Belgrade's railway hub "Prokop", 170m USD in Orlovača - Bubanj Potok section of the bypass around Belgrade, 180m USD in construction of Belgrade - Čačak highway and a section of South Adriatics road. At the only meeting that has been held to the date, the representatives of Serbian delegation pointed to importance of the investment of 150m USD in construction of Valjevo-Loznica road, while 100m USD should be spent on electrification of Niš - Dimitrovgrad railway.

According to unofficial sources, Russian side asked for mandatory participation of Russian operative in return for the provision of financial support for these projects under correct terms.

Interest rates