Serbia Signs for a 200 Million Euro Loan by the EU

The deputy prime minister and responsible for European integration of Serbia, Mr. Bozidar Djelic and the Economic and Monetary Policy of the European Union Mr Olli Rehn signed an agreement to provide credit assistance to Serbia, totaling to 200 million Euros. The repayment period of the loan is 8 years at an annual rate of about 1%, as noted in his statement, Mr Djelic adding that if Serbia went to a loan from a free capital market the cost would be higher by 30 million Euro. The loan funds will be allocated to Serbia in two equal installments, the first of which in the summer or September and the second by the end of the year. The basic prerequisites for obtaining the loan will have to be approved by the Serbian government by the end of July and include the Law on fiscal responsibility, of which implementation aims to reduce the budget deficit. The agreement for the loan is proof of political and financial support provided by the European Union to Serbia, said Mr Rehn.