Parliament confirms agreement on Russian loan of USD 500 million

The Serbian parliament confirmed Tuesday an agreement signed between the Serbian government and the Government of Russian Federation on the approval of a financial loan of USD 500 million to Serbia to prop up the republic budget.

This agreement was concluded 10 April 2013 in Moscow.

Russia is going to transfer the money in US dollars in two tranches to the account of the Serbian Finance and Economy Ministry with the National Bank of Serbia.

The first tranche of USD 300 million will be paid within maximum 45 days of the effective date of the agreement, whereas the second tranche of USD 200 million is to be paid within maximum 14 days of the moment the Russian side receives an official notice from the Serbian side that the Executive Board of the International Monetary Fund (IMF) has adopted an economic program for Serbia, but not before July 15th, 2013.

Serbia is to repay this loan in 32 equal installments with the payments to be made on the 15th of March, June, September and December every year. The first payment should be made 15 March 2015 and the last one on 15 December 2022.

Serbian MPs also confirmed an agreement on the approval of a loan of up to EUR 46 million for the Water Supply and Wastewater Treatment Program for Medium-Sized Municipalities in Serbia, which was signed between KfW from Frankfurt and the Republic of Serbia.