Serbian newspaper Politika reported sources in the government as saying that Russia will approve a $1bn loan to support Serbia’s budget, a deal agreed at the recent meeting in Sochi between Serbian President Tomislav Nikolic and Russian President Vladimir Putin.
Instead of the previously agreed $800m, which was supposed to be used for infrastructure projects, the entire $1bn will be redirected into the state treasury. The first instalment of $300m will be approved this year and the second instalment of $700m will be approved next year.
As far as conditions are concerned, the loan was agreed with a payback deadline of 10 years; Serbia will start paying back the first instalment a one year start period. The interest rate is 2.95% over six-month Libor.
Source Balkans
