EUR 250mn for Serbian Railways
The debt of public enterprise Serbian Railways (ŽS) stands at EUR 269mn, Milanko Šarančić says.
Sunday, 26.08.2007.
13:32
The debt of public enterprise Serbian Railways (ZS) stands at EUR 269mn, Milanko Sarancic says. The company's director added that the negotiations with the Finance Ministry about modalities of paying back the debt inherited from the past several decades were underway. EUR 250mn for Serbian Railways “We are discussing a deal according to which the state would assume responsibility for paying the debt, so that the company could invest its entire profit into modernization,” Saranovic explained. He added that the management was discussing arrangements with international financial institutions about taking out two loans for the modernization of railways. “We already negotiated a EUR150mn loan with the World Bank, while the European Bank for Reconstruction and Development (EBRD) will likely grant us a EUR 100mn loan for the purchase of trains.” According him, more than EUR 3bn is needed to fully modernize railway traffic in Serbia. This year’s state budget set aside EUR 132mn for subsidizing the Serbian Railways, whose assets have been estimated at EUR 3bn.
EUR 250mn for Serbian Railways
“We are discussing a deal according to which the state would assume responsibility for paying the debt, so that the company could invest its entire profit into modernization,” Šaranović explained.He added that the management was discussing arrangements with international financial institutions about taking out two loans for the modernization of railways.
“We already negotiated a EUR150mn loan with the World Bank, while the European Bank for Reconstruction and Development (EBRD) will likely grant us a EUR 100mn loan for the purchase of trains.”
According him, more than EUR 3bn is needed to fully modernize railway traffic in Serbia.
This year’s state budget set aside EUR 132mn for subsidizing the Serbian Railways, whose assets have been estimated at EUR 3bn.
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