DINKIC: First tranche of Russian loan in Q2 2013?

(Mladjan Dinkic)

Finance and Economy Minister Mladjan Dinkic voiced his hope that Serbia would reach an agreement on Russia's USD 1 billion loan in Q1 and receive the first tranche in Q2 2013.

- Me and (Russian Finance Minister Anton) Siluanov have come to a conclusion that our technical teams will reach an agreement on the loan by the end of this quarter. We hope that the first tranche will be available as early as in the second quarter - Dinkic said in an interview with Russia's Gazeta web portal.

He reminded that negotiations with Russian Finance Minister Anton Siluanov on an interstate billion-dollar loan for covering Serbia's budget deficit had commenced on January 11th.

The minister noted that Serbia would need EUR 4.5 billion in 2013, 3 billion of which it planned to borrow in the international market and the rest in the local one.

As he specified, that money will be used to cover the budget deficit as well as to refinance the government debt and satisfy country's other needs. Serbia requires USD 1.5 billion to cover the budget deficit only.

According to Dinkic, Serbia will issue EUR 2 billion Eurobond and receive another billion euros directly from Russia.

The minister added that the possibility of issuing additional USD 250 million worth of bonds denominated in the Russian rubles was under consideration.