Serbia officially applies for Russian loan

The Serbian Ministry of Finance and Economy has sent an official request to the Russian Ministry of Finance asking for approval of a loan.

Source: Tanjug

Serbia is asking for USD 300 million loan to cover its budget deficit, and hopes to receive the funds by the end of the year.

This was heard on Saturday from Serbia's Minister of Mining Milan Bačević, who spoke for Tanjug.

He expressed belief the interest rate would be favorable, but said the two sides were yet to agree on the details.

The interest late will be lower than for commercial loans we could potentially get somewhere else, said the minister, adding that the terms under which Serbia would be able to borrow USD 300 million for this and USD 700 million for the next budget year should be finalized soon.

"This will be negotiated by the competent ministries and the governments of the two countries. But presidents Vladimir Putin and Tomislav Nikolic also talked about it during their recent meeting, so there is really only one unknown - what the interest rate will be. We have been assured it will be lower, considering we have already taken some loans from them, so we know the interest rate was quite acceptable for us," said Bačević.

The minister recalled that Serbia and Russia have a deal for another USD 800 million loan.

This loan is certain and the terms are very favorable for us, but before it can be realized, Serbia needs to complete the main and detailed designs, so that we can withdraw the money and spend it for its intended purpose.

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