Serbia to borrow EUR 252.1 million from four banks to build Vojvodina Smile

The Government of Serbia has adopted the Draft Law on Borrowing of the Republic of Serbia from four commercial banks to finance the project to build a high-speed road on the Backi Breg-Sombor-Kikinda route.

As stated in the explanatory memorandum to the bill, Serbia will directly borrow RSD 29.6 billion from AIK Bank, OTP Banka Srbija, Banca Intesa and UniCredit Bank Srbija.

The borrowing is envisaged by the Serbian Budget Law for 2026, which approved borrowing of up to RSD 35.16 billion for this project. The loan will be denominated in dinars, with the aim, as stated, of greater use of the domestic currency and reducing foreign exchange risk.

The long-term investment loan agreement was signed on July 24, 2026, in Belgrade, and it defines the terms of financing the project.

The loan will be repaid in six-month installments, with a maturity of 10 years, or until June 30, 2036. There is a grace period until June 30, 2028, after which the principal will be repaid in equal semi-annual installments.

The interest rate is defined as six-month BELIBOR plus a fixed margin of 2.4% per annum. The application processing and loan disbursement fee is 0.30% of the total loan amount and is paid once, while the fee for unused funds is 0.30% per annum.

Loan funds can be withdrawn until December 30, 2028, with the possibility of extending this period with the written consent of the bank. The possibility of early repayment without a fee is also envisaged.

The Backi Breg-Sombor-Kula-Vrbas-Srbobran-Becej-Kikinda-Nakovo expressway project, i.e. connecting the border with Hungary and the border with Romania, was declared by the Government in 2020 as a project of special importance for Serbia.

The current loan will finance the implementation of the Backi Breg-Sombor-Kikinda section, while Phase 1 of the project on the Backi Breg-Sombor-Kula-Vrbas-Srbobran route is also defined within the commercial agreement.

The investor rights on behalf and for the account of the Republic of Serbia in the project are performed by Corridors of Serbia, while the Ministry of Construction, Transport and Infrastructure, as the loan beneficiary, Corridors of Serbia as the investor and the Azvirt company, Belgrade branch, as the contractor are responsible for the implementation and realization of the project.

I. Z.

Vlada Republike Srbije

AikBank ad Beograd

OTP banka Srbija a.d. Novi Sad

Banca Intesa a.d. Beograd

UniCredit Bank Srbija a.d. Beograd

Koridori Srbije d.o.o. Beograd

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Azvirt Beograd

Government of Serbia

AIK Bank

OTP Banka Srbija

Banca Intesa

UniCredit Bank Srbija

Corridors of Serbia

Ministry of Construction Transport and Infrastructure

Azvirt

Draft Law on Borrowing of the Republic of Serbia from four commercial banks to finance the project to build a high speed road on the Backi Breg Sombor Kikinda route

Vojvodina Smile