The German government has agreed to settle a 18.5 million euro ($21 million) debt owed to it by Serbia, the Serbian finance ministry said.
Germany approved the settlement of the debt in December, as a result of the positive economic results of Serbia, the finance ministry said in a statement on Monday.
The debt was owed to Germany as part of Serbia’s liabilities to the Paris Club of government creditors.
“In our country, there are 400 companies from Germany, which employ about 50,000 people. It is crucial for investors to operate in a stable country, and Serbia has implemented numerous reforms whose economic effects are now visible,” Serbian finance minister Sinisa Mali said in the statement.
Last month, the Czech government also agreed to settle a $32.8 million debt owed by Serbia which originated in the early 1990s as the final balance of the mutual trading account between the Czech and Slovak Federative Republics and the Socialist Federal Republic of Yugoslavia.
Serbia’s central government debt decreased to 23.946 billion euro at the end of September from 23.977 billion euro a month earlier, according to finance ministry data.