Serbia borrows from the Development Bank of the Council of Europe for an additional EUR 110 million for the renovation of health centers

The Government of Serbia submitted to the National Assembly the Bill on the confirmation of the framework agreement on a loan of EUR 110 million between the Development Bank of the Council of Europe and the Republic of Serbia. It is a loan for financing the renovation of health centers, based on an agreement that was signed in Paris on June 23 of this year, and in Belgrade on June 29.

The loan will be disbursed in two tranches, and the amount of each tranche will be determined in accordance with incurred or forecasted costs, and the amount of the first tranche will not exceed 50% of the loan amount. As specified, before each payment, Serbia (that is, the Ministry of Finance) will submit a payment request to the bank.

Submission of the request for payment of the first tranche is scheduled within 12 months after the signing of the framework agreement or after 24 months after the bank's administrative council approved the loan request. For each withdrawn tranche, the borrower has the option of choosing a repayment period of up to 20 years with an included grace period of up to five years.

The total loan refers to works planned from 2019 to 2028, and the date of conclusion of the loan is December 31, 2028.

The total estimated value of the project increased from EUR 630 million to EUR 767.5 million, of which the bank provides EUR 510 million, including funds based on the initial agreement, additional agreement and new loan, while the remaining funds will be provided from other sources of financing of the Republic of Serbia. The first framework agreement for a loan of EUR 200 million was signed in 2019, and the second one in the same amount was signed in 2023.

The Ministry of Public Investments was designated as the body for implementing the project.

Vlada Republike Srbije

Narodna skupština Republike Srbije

Ministarstvo finansija Republike Srbije

Ministarstvo za javna ulaganja Republike Srbije

Council of Europe Development Bank

Draft Law on the Ratification of the Framework Loan Agreement between the Council of Europe Development Bank and the Republic of Serbia

renovation of healthcare centers