State to borrow EUR 128 million for construction of Pozarevac-Golubac section

At its most recent session, the Government of Serbia adopted the Bill on the Borrowing of the Republic of Serbia from OTP Banka Srbija a.d. Novi Sad for the Needs of the Financing of the Project of the Construction of the Expressway (Section Pozarevac-Golubac (Danube Main Road). The agreement envisages borrowing in the amount of RSD 15 billion (around EUR 128 million), with a ten-year repayment deadline, including a three-year grace period.

The Pozarevac-Golubac expressway, which has been pronounced a project of special importance for Serbia, is being built in a length of 68 kilometers and will be part of the Danube Main Road.

The project is worth up to EUR 337 million, and the plan is for it to be financed from several sources, including a long-term investment loan from OTP Bank.

The works are being carried out by the Chinese company China Shandong International Economic and Technical Cooperation Group, a member of Shandong Hi-Speed Group, which has been hired based on the commercial agreement signed with the Government of Serbia.

The interest rate on the loan amounts to a three-month BELIBOR increased by a fixed margin of 2.5% a year, whereas the compensation for the loan approval is 0.3% of the total amount, paid through a single payment on the occasion of the first issuing of the funds. The loan availability period expires on August 4, 2026, with the possibility of extension as per a special request.

By the way, the Law on the Budget of the Republic of Serbia for 2025 allows borrowing in the amount of up to RSD 24 billion from commercial banks for this project.

I. Z.

Vlada Republike Srbije

OTP banka Srbija a.d. Novi Sad

China Shandong International Economic & Technical Cooperation Group Ltd. ogranak Beograd

Government of Serbia

OTP Bank

China Shandong International Economic and Technical Cooperation Group

Bill on the Borrowing of the Republic of Serbia from OTP Banka Srbija

Danube Main Road

Požarevac Golubac

loan for construction of Danube Main Road