State guarantees for EUR 190 million loans to Srbijagas

The Serbian parliament has received from the Serbian government a draft law on the emergency provision of state guarantees for EUR 190 million loans to be granted to Srbijagas by seven domestic and foreign banks.

Srbijagas plans to use the proceeds of the loans to maintain its current liquidity, whereas the provision of state guarantees for these loans is envisaged by Serbia's 2012 Budget Law.

Loans should be granted by OTP Bank (EUR 10 million), Volksbank (EUR 70 million), Vojvodjanska Banka (EUR 20 million), Societe Generale Bank (EUR 10 million), UniCredit Bank (EUR 10 million), Amsterdam Trade Bank (EUR 20 million) and Deutsche Bank (EUR 50 million).

The repayment period for all loans is five years, while the annual interest rate equals three-month EURIBOR plus a margin ranging from 5.98 to 7.25 percent.

In July 2012, the Serbian parliament endorsed state guarantees for EUR 210 million loans that Srbijagas took out from six commercial banks.