Minister praises "favorable loan"; opposition unconvinced

Minister praises "favorable loan"; opposition unconvinced

He told RTS on Thursday evening that the money will be used to implement the economic policy that will be defined by the budget review after the March 16 early elections and formation of a new government.

"A part of the loan will be used to stimulate the economy either through subsidized interest rates or through direct incentives for great investments both domestic and foreign ones," he said.

This will be discussed in greater detail after the parliamentary elections and in the process of harmonization of the budget review, Krstić said.

“This loan is not important only for the budget savings, but also because it confirms the credibility,” the minister of finance said.

The loan also shows the depth of the cooperation with the UAE, Krstić said.

“It shows that the cooperation is developing in the right direction and at the right pace and the future tranches will be discussed accordingly,” Krstić said answering a reporter's question on further loans from the UAE.

"New opportunities"

The agreement on a USD 1 billion loan to Serbia from the United Arab Emirates (UAE) will contribute to enhancing the cooperation and ties between the two countries and is in their mutual interest, also encouraging the private and public sectors in the UAE to seek investment opportunities in Serbia, said a statement released in Abu Dhabi.

The chairman of the Abu Dhabi Department of Finance Hamad Al Hurr Al Suwaidi and Serbian Finance Minister Lazar Krstić signed in Abu Dhabi on Thursday an agreement on the USD 1 billion loan to Serbia.

The statement, released later in the day, said that the agreement on the loan had been reached during a visit of Serbian First Deputy Prime Minister Aleksandar Vucic to the UAE, when he met with Sheikh Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and deputy supreme commander of the UAE Armed Force.

Relations between the UAE and Serbia are on an upward trajectory in various sectors, and the agreement reflects the efforts of the two countries to further enhance their cooperation and bilateral ties, Suwaidi said.

The agreement is also in line with the directives and vision of Sheikh Khalifa bin Zayed bin Sultan Al Nahyan, and has the support of Sheikh Mohammed, Al Suwaidi said.

"Deception and incompetence"

The opposition Democratic Party (DS) said earlier that the loan amounted "yet more deception" that Aleksandar Vučić and his Serb Progressive Party (SNS) were guilty of.

It also "takes Serbia a step closer to bankruptcy," according to the DS.

“Instead of the announced loan of three billion euros, we received an announcement of a loan of one billion dollars, with requirements twice worse than those the previous government was receiving from the World Bank,” the party said in a statement.

The DS said the Progressives' " incompetence" had brought into question regular payment of salaries, pensions and social benefits in Serbia.

“The SNS deception reached its peak with a statement by the outgoing first deputy prime minister and the price will once again be paid by the citizens of Serbia,” the statement said.