EBRD postpones approval of loan to Srbijagas

The Administrative Board of the European Bank for Reconstruction and Development (EBRD) will not be considering approval of the loan of 150m EUR to public company Srbijagas today (January 26, 2010), as it was planned.

EBRD's spokesperson Bojana Todorovska told Beta agency that the negotiations with the Government of Serbia and Srbijagas on that loan would be resumed and that the loan might be granted in two weeks, at the next meeting of the creditor's Administrative Board.

- All sides are doing their best to finish the negotiations and necessary procedures before the next meeting of the EBRD's Administrative Board, which should be held on February 9th - said she.

Todorovska said that the Government of Serbia had formally appointed the Commission for negotiations on the loan for public company Srbijagas.

- Once the negotiations are finished, the contracts will be forwarded to the Government for approval, as well as to the Administrative Board of EBRD - said EBRD's spokesperson Bojana Todorovska.

- The loan of 150m EUR was supposed to be approved to Srbijagas at the meeting of the Board on January 12th, but the decision was postponed until January 26th because the negotiations with Srbijagas were not finished yet at the time - people from EBRD told Beta agency earlier.

- Srbijagas should use 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.

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