Agreement signed with EIB on loan of 40 million euros for bypass around Belgrade

Agreements on guarantees and a loan of 40 million euros of the European Investment Bank (EIB) for public company Putevi Srbije for the construction of a bypass around Belgrade were signed today in the Government of Serbia.

The agreements were signed by EIB President Philippe Maystadt, Putevi Srbije Director General Zoran Drobnjak and Minister of Finance Diana Dragutinovic.

- The loan has been granted under extremely favorable conditions with a 25-year repayment period, a seven-year grace period and a 0.7% interest rate plus Euribor at a six-month level, which is now less than 2% - Dragutinovic said at the press conference.

The Minister indicated that the cost of the works on the bypass had been estimated at €360 million, noting that the EIB approved half of that sum, the European Bank for Reconstruction and Development (EBRD) another €60 million, while the rest would be provided by Putevi Srbije.

The EIB will, as Dragutinovic announced, open a regional office in Belgrade in November. Since 2001, this Bank has invested €2.6 billion in Serbia and, according to the Minister, it remains the country's reliable partner.

- The bypass around Belgrade is one of the seven projects the EIB is financing in Serbia, and it has so far earmarked over €700 million for the road construction - said Maystadt.

Last year the EIB secured €893 million for projects in Serbia and granted almost the same amount this year, while for 2011 it has huge plans for Serbia, Maystadt underlined.

- The EIB strongly supports Serbia on its EU path - said Maystadt.

He confirmed that the EIB would take part in financing Fiat’s car production in Kragujevac, as well as the production of car part suppliers from Serbia.

- The EIB's loan for the bypass around Belgrade will be spent on the works on the section from Ibarska main route to the Avala Road, 5.4 km long, which also includes three bridges and a tunnel - Drobnjak explained.

According to the plan of Putevi Srbije, the works will last for 12 to 18 months.

Vlada Republike Srbije

JP Putevi Srbije Beograd

EIB

Ministarstvo finansija Republike Srbije

EBRD Evropska banka za obnovu i razvoj Beograd

FCA Srbija doo Kragujevac

Government of Serbia

Putevi Srbije

EIB

Philippe Maystadt

Ministry of Finance

Zoran Drobnjak

EBRD

European Bank for Reconstruction and Development

Fiat

Avala