State to borrow another RSD 42 billion from Postanska stedionica for National Stadium

Serbia will take out a loan of RSD 42 billion (around EUR 358.8 million) from Banka Postanska stedionica for the construction of the National Football Stadium with access roads. The contractor for the construction of the stadium in Surcin is the Chinese company Power China.

These data are in the bill by which the National Assembly should approve this financing, which is in the parliamentary procedure. The borrowing, as reported, is done based on the Agreement on the Long-Term Investment Loan, which was signed on June 25 between Serbia and Banka Postanska stedionica.

This is a dinar loan, and Serbia will take it out at an interest in the amount of the three-month BELIBOR, plus a fixed margin of 2.9% a year. The loan repayment period is 11 years, with a grace period of three years.

By the decision of May 11, the Government of Serbia pronounced the project of the construction of the urban infrastructure and the national stadium with access roads a project of special importance for Serbia.

– Considering the successful cooperation with Power Construction Corporation of China Ltd so far, the government, through the Ministry of Finance, signed, on April 27, 2023, the Agreement on Cooperation regarding the realization and financing of the preparatory works for the Project of the Construction of the Urban Infrastructure and the National Stadium with Access Routes – the bill says.

The works entail the design, procurement and construction of a national football stadium with 52,000 seats, with an accompanying parking lot, equipment and other side structures in the function of the stadium.

Last autumn, Serbia already took out loans from Postanska stedionica and UniCredit bank for the construction of the linear structure to the National Stadium. Serbia will be able to withdraw RSD 11.2 billion from each of these banks, that is, RSD 24 billion in total (around EUR 190 million).

Of the amount it agreed with Postanska stedionica, Serbia withdrew around RSD 8.2 billion by the end of March 2024, while not withdrawing anything within the agreement with UniCredit Bank by the end of that month.

Banka Poštanska štedionica a.d. Beograd

Power Construction Corporation of China Limited Ogranak Beograd

National Stadium Surčin

Banka Poštanska štedionica Belgrade

Power Construction Corporation of China Limited

Power China

borrowing of Serbia for construction of National Stadium