State borrows from commercial banks
Finance Minister Diana Dragutinović says Serbia is borrowing money from ten commercial banks in order to finance the budget deficit.
Tuesday, 09.11.2010.
14:28
Finance Minister Diana Dragutinovic says Serbia is borrowing money from ten commercial banks in order to finance the budget deficit. The state will take out loans worth EUR 250mn. State borrows from commercial banks Explaining the legal acts on Serbia's borrowing from commercial banks, Dragutinovic said that the Law on 2010 Budget envisages deficit as well as the mode of its financing and borrowing. According to Dragutinovic, the period of debt service is five years and includes one year of grace period, and the borrower retains the right to clear the debt before the maturity date without any compensation. Commenting on the bill on Serbia's government guaranteeing for Jat Airways' loan, Dragutinovic said that the state air carrier is in the process of restructuring, and that the loan guarantee is just one of the moves in that process. It is a long-term loan with two foreign commercial banks worth EUR 51.5mn, of which EUR 40mn will be used for Jat Airways' revitalization, EUR 9.5mn for rebuilding of the fleet and EUR 2mn for the purchase of two new aircrafts, she explained.
State borrows from commercial banks
Explaining the legal acts on Serbia's borrowing from commercial banks, Dragutinović said that the Law on 2010 Budget envisages deficit as well as the mode of its financing and borrowing.According to Dragutinović, the period of debt service is five years and includes one year of grace period, and the borrower retains the right to clear the debt before the maturity date without any compensation.
Commenting on the bill on Serbia's government guaranteeing for Jat Airways' loan, Dragutinović said that the state air carrier is in the process of restructuring, and that the loan guarantee is just one of the moves in that process.
It is a long-term loan with two foreign commercial banks worth EUR 51.5mn, of which EUR 40mn will be used for Jat Airways' revitalization, EUR 9.5mn for rebuilding of the fleet and EUR 2mn for the purchase of two new aircrafts, she explained.
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