The Government of Serbia has proposed to the National Assembly a law on a loan worth 15 million euros, which it intends to take from the European Bank for Reconstruction and Development. The goal of the loan, which would be repaid by 2034, is the construction of irrigation infrastructure in the municipalities of Svilajnac and Negotin.
The loan will, as it is emphasized, accelerate the transition to open, market-oriented economies and promote private and entrepreneurial initiative.
The project will be implemented by the Public Water Management Company Srbijavode, with the financial support of the state, municipalities and with the participation of the Ministry of Agriculture.
It is added that the European Bank for Reconstruction and Development is also preparing technical assistance in the form of non-refundable funds, in the amount of 1,200,000 euros, with the goal of helping Serbia in the preparation of the Irrigation Strategy.
The minimum amount for loan withdrawal is 50,000 euros, the minimum amount of early payment is 1 million euros and the same amount is the minimum amount that can be canceled within the loan withdrawal.
It is added that the dates for paying the interest are April 25 and October 25 every year, as well as that Serbia is obliged to repay the law in 24 equal installments. The first repayment date is April 25, 2023, and the last is October 25, 2034.
It is noted that the final date of availability of the loan is December 22, 2022 or a later date that the bank may, at its discretion, determine and communicate to the borrower.
The commission rate on the undrawn part of the loan is 0.5% per annum.
As noted, the loan is subject to a variable interest rate, and the borrower can choose to pay at a fixed interest rate.
The opinion on the projects that will be financed from this loan on behalf of each municipality in which the irrigation structure will be built is issued by the local self-government service, while the opinion on behalf of the loan beneficiaries is given by the Ministry of Justice.
The purpose of the project is to specify assistance in the construction and reconstruction of basic irrigation infrastructure in Svilajnac and Negotin and to provide support in the implementation of the project and supervision of construction works.
The project consists of construction works, hiring consultants for its implementation and is expected to be completed on the last day of 2022, Nova Ekonomija reports.
