On April, 30 Serbia will make premature repayment of one half of the London Creditors Club debt

The Serbian government will tomorrow prematurely pay 400 million USD to the London Creditors Club, which is about half of the total remaining debt to this creditor, of 860 million USD, it has been announced by the Ministry of Finance of Serbia.

The order for premature repayment of debt to the London Club has already been given by the Finance Minister, Mladjan Dinkic.

In addition to the regular payment of this year's installment, the London Club debt will be reduced by 436 million dollars.

- The Government of Serbia shall continue to pursue a strategy of early repayment of expensive loans from the past and keep fiscal policy that contributes to cutting down the interest on the public debt, on both the international and domestic capital markets - according to the Ministry statement.

The interest rate on the debt to the London Club is 6.75%, which is about two percentage points higher than the interest rate that the Ministry of Finance managed to achieve through the sale of Eurobonds in February this year.

With the early repayment of debts, the state will achieve savings in this year's budget of RSD 1.1 billion, on behalf of minor interest expenses.

On this basis, significant savings will be realized in the coming years, in the amount of 1 to 2 billion RSD a year, according to the statement of the Ministry of Finance and Economy of Serbia.