Serbia will undertake the obligation to settle the obligations of the Public Company “Srbijagas” on the basis of a loan of up to 40 million euros (in dinar equivalent) for “strengthening the transport capacities of the gas pipeline”.
The Government of Serbia has proposed the Law on Guaranteeing the Republic of Serbia in favor of Banca Intesa AD Belgrade and Raiffeisen Bank ad Belgrade on behalf of the Public Company Srbijagas Novi Sad, based on a loan agreement to strengthen the transport capacity of gas pipelines in Serbia.
Serbia will be the guarantor for the loans of “Srbijagas” approved by Banca Intesa (20 million euros), and two loans of ten million each from Raiffeisen Bank.
The loan funds will be used for the construction of a gas pipeline on the territory of the Zlatibor district, it is written in the Bill.
“The construction of new gas pipelines and further gasification of the territory of Serbia in order to create conditions for the use of natural gas contribute to the strengthening of gas pipeline transport capacities, and gasification of Zlatibor district is the first in a series of projects planned to strengthen gas transport capacities in Serbia. The amount earmarked for this project is up to 40m euros.”
Loan agreements stipulate that loans are approved under the following conditions:
• loan amount in dinar equivalent with foreign exchange clause;
• the loan period is eight years, including a starting period of two years;
• withdrawal of loan funds in one or more tranches;
• loan repayment quarterly;
• the interest rate ranges from 1.48 percent to 1.57 percent annually + 3M EURIBOR.
In the signed agreements, the withdrawal of loan funds in the amount of up to 40 million euros, in dinar equivalent, at the middle exchange rate of the National Bank of Serbia, on the day of the tranche payment, is conditioned by giving a guarantee from Serbia, the explanation says.
As stated in the explanation of the law, further gasification of the Zlatibor district will create conditions for the construction of distribution gas pipelines in all settlements of the Zlatibor district and connecting industrial, communal and individual consumers to the distribution system.
“It is a district of great potential for increasing economic activity, which lacks natural gas as an energy source, for which it is necessary to build distribution pipelines for Priboj, Nova Varos, Prijepolje, Sjenica and Rutos,” it is stated, Nova Ekonomija reports.
