UAE loan could be ratified in second quarter of 2014

UAE loan could be ratified in second quarter of 2014

"This is a good signal to the international community and the investors, indicating the credibility of Serbia," stressed the minister, Tanjug reported.

First Deputy Prime Minister Aleksandar Vučić "thanked President Tomislav Nikolić and Prime Minister Ivica Dačić on their support in the signing of the loan agreement."

According to announcements, Krstić was to "travel to Abu Dhabi at midnight" in order to sign the contract.

According to him, the interest rate is two percent, while the grace period for the principal would extend until the end of the loan arrangement, i.e., for ten years.

Krstić also explained that the money could be withdrawn "when legal requirements are present" - that is, when parliament ratifies it after the elections, most likely in the second quarter of 2014.

The loan arrangement with the United Arab Emirates (UAE) is a major development for Serbia, as it will enable the country to save around EUR 300 million, Serbian First Deputy Prime Minister Aleksandar Vučić has said, noting that he expects at least part of the loan to be invested into production.

"Thanks to the good political relations and ties with the Abu Dhabi government and Sheikh Mohammed bin Zayed, we have managed to secure that money for the Serbian citizens," Vučić said late Wednesday at a government session at which the decision was made to accept the UAE loan, worth USD 1 billion.

"The people of Serbia need to know that we have never obtained anything this favorable from anyone, no loan has been as good or as favorable as the one from the UAE," Vučić said.

He said that the loan will be used to fill budgetary gaps and reprogram the most unfavorable loans taken four or five years ago at interest rates of 7.5 percent, but added that he expects that at least part of the funds can be invested into production.

"I do not think that this is the end - this is the beginning of the cooperation because the UAE is also interested in helping stability and economic progress in Serbia," Vučić said.

Vučić said that he is confident that "whoever wins the upcoming elections" will stand by the massive deal for Serbia, as it will allow the country to save the equivalent of almost one third of the total solidarity tax collected annually.

He thanked the Serbian president, prime minister and government ministers who have helped secure the favorable loan agreement with the UAE.

Vučić particularly thanked the Abu Dhabi government, adding that joint projects include Air Serbia, Belgrade on Water and loans for irrigation.