Agreement on write-off of 25m EUR of Serbia's debt

Minister of Finance, Mlađan Dinkić, signed the Agreement yesterday (September 27, 2006) with the manager of the Office of German Credit Institute (KfW), Elke Halštern, on exchange of debt between Republic of Serbia and KfW .

The Agreement implies the write-off of the debt in amount of 25m EUR owed by Serbia to Germany, as the creditor of the Paris Club.

Signing of that Agreement is a part of the plan of the Government of Serbia for conditional write-off of about 1 billion EUR of the debt to the Paris Creditors Club in exchange for capital investments in Serbia. This plan is also known to the public as "package plus".