Agreement signed on EU's loan of 200 million euros for Serbian budget

Deputy Prime Minister for European Integration Bozidar Djelic and EU Commissioner for Economic and Monetary Policy Olli Rehn signed an agreement today (July 5, 2010) on macro financial assistance to Serbia in the amount of €200 million.

Djelic and Rhen observed that this loan agreement is proof of the political and economic support of the EU to Serbia.

The EU will borrow money for the loan to Serbia on the financial market on the most favourable terms.

Djelic said that the repayment period for the loan will be eight years with an annual interest rate of about 1%, noting that if Serbia had taken a direct loan it would have cost about €30 million more.

The EU’s loan will be disbursed in two equal tranches, the first of which is expected this summer or in September, he confirmed.

The condition for obtaining this loan is that the Serbian government adopts the law on fiscal responsibility by the end of July and thus limits budgetary expenditure.

The second tranche of the loan should be released by the end of the year.

Djelic noted that this loan arrangement with the EU is fully adjusted to Serbia’s needs.

Vlada Republike Srbije

Bozidar Djelić

Oli Rhen