State to Take Out Loan of RSD 15 Billion from Local Bank for Construction of Ruma-Sabac-Loznica Traffic Route

The Government of Serbia has adopted the Bill on the Republic of Serbia taking out a loan from Banca Intesa AD Beograd for the purposes of the financing of the project of the construction of the Ruma-Sabac-Loznica traffic route. This is a long-term investment loan of RSD 15 billion (around EUR 130 million), whose value will be paid out in local currency.

The loan is approved at the nominal interest rate which amounts to BELIBOR 3M + 3.30% at an annual level, and the final repayment date is April 1, 2033.

Let us remind that, in November 2019, the Government of Serbia, the PE Roads of Serbia, the PE Corridors of Serbia and the company AzVirt signed a commercial agreement on the planning and execution of works on the Ruma-Sabac-Loznica project. The agreement envisages project value of up to EUR 467,500,000, as well as the completion of project-technical documentation and execution of works.

The execution of the works encompasses the construction of three sections: the construction of the Ruma-Sabac highway, from E-70 highway (Ruma interchange) to the bridge on the Sava in Sabac, 21.14 km long, for a speed of 130 km/h, with a width of 29 m and a median strip of 4 m (construction period three years); the construction of a bridge on the river Sava in Sabac, 1,327.5 m long, including a ramp (construction period three years); and the construction of a fast route from Sabac to Loznica, 54.58 km long, for a speed of 100 km/h, with a width of 19 m and a median strip of 3 m (construction period four years).

The 2023 Budget Law approves taking out a loan of up to EUR 250 million for the construction of the Ruma-Sabac-Loznica traffic route. As a support to a greater use of the dinar currency and a reduction of FX risks in the local financial system, the parties agreed for the loan to be taken out in dinars.

Take a look at our info-map Construction of Highways and Fast Roads in Serbia and the Region.

I. Z.

Vlada Republike Srbije

JP Putevi Srbije Beograd

Azvirt Beograd

Banca Intesa a.d. Beograd

Government of Serbia

PE Roads of Serbia

PE Corridors of Serbia

AzVirt

Banca Intesa AD Beograd

Bill on the Republic of Serbia taking out a loan from Banca Intesa AD Beograd for the purposes of the financing of the project of the construction of the Ruma Sabac Loznica traffic route

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