City of Belgrade requires loan of RSD 26 mil

The heads of the Belgrade city management decided to compensate the lack of funds in the city budget with new loans. During the recent years, apart from large investment projects such as Bridge on and Bulevar Kralja Aleksandra, capital Secretariat for Finance has launched calls for bids for crediting schools, kindergartens but also streets and roads. The latest loan Belgrade islooking for totals almost RSD 3 billion, which is some EUR 26 mil EUR!

Early this week, the officials of Belgrade have invited interested investors to provide them loans for funding some of the projects in the city. The title “capital” this time included schools, kindergartens, sports halls …

Thus, they are asking for a loan of RSD 683 million while the city is planning to ask a total of RSD 737 mil for kindergartens. The city needs a loan of RSD 240 million for sports facilities and social protection field facilities.

This way, both streets and municipal roads would be fixed, which requires a loan of RSD 835 mil while for the rehabilitation of former regional roads which are now the responsibility of Belgrade, the City must take a loan of RSD 464 mil.

- It is about the loan which we would take in dinars – the representatives of the Secretariat for Finance. The maturity period is five years and we would accept the offer which would include the lowest interest rate. We have debited a couple of times this way, four years ago and two years ago. The total amount we require now is RSD 2,9 billion with a maturity period of five years.

According to a released call, offers can be submitted for one or more projects. If two or more offers will have the same offer, a bidder with shorter deadline for payment or longer offer validity period would be chosen. Everybody be approved by NBS to issue loans.

Majority of funds for streets and municipal roads

1. Construction of primary education facilities RSD 683.000.000

2. Construction of pre-school education facilities RSD 737.000.000

3. Social protection facilities and sports courts 240.000.000

4. Rehabilitation of streets and municipal roads RSD 835.378.000

5. Rehabilitation of former regional roads RSD 464.622.000