Serbia borrows EUR 350 million for roads

The Government of Serbia adopted the Bill on Confirmation of the Financial Agreement "Sustainable Improvement of the Road Network" between the Republic of Serbia and the European Investment Bank, as well as the Bill on Confirmation of the Framework Agreement on Loan LD 2251 (2025) between the Development Bank of the Council of Europe and the Republic of Serbia for financing the public sector - rehabilitation of local roads.

The proposals stipulate that the state will borrow a total of EUR 350 million for the improvement of road infrastructure.

A loan of EUR 150 million was agreed with the European Investment Bank for a project that includes rehabilitation and increasing the resilience of about 540 kilometers of state and local roads, with a focus on climate resilience and traffic safety. The repayment term is 15 years, including a five-year grace period, and the funds will be withdrawn in several tranches, without paying access fees and commissions on undrawn funds.

At the same time, a framework agreement worth EUR 200 million was signed with the Development Bank of the Council of Europe for the rehabilitation of local roads in less developed municipalities. The total estimated value of that project is EUR 286 million, and the rest of the money will be provided from the budget of the Republic of Serbia. The loan can be repaid in up to 20 years, with a grace period of up to five years.

Works on local roads will include rehabilitation and replacement of dilapidated roadways, expansion of roads, improvement of drainage systems, as well as construction and renovation of sidewalks, bicycle paths and accessibility elements. The project is planned to be implemented from 2026 to 2029.

Both agreements will enter into force after confirmation by the National Assembly.

I. Z.

Vlada Republike Srbije

Evropska investiciona banka EIB

Government of Serbia

European Investment Bank

Development Bank of the Council of Europe

Proposal for the Law on Confirmation of the Financial Agreement Sustainable Improvement of the Road Network

Proposal for the Law on Confirmation of the Framework Agreement on the Loan LD 2251