Serbia plans to take a loan of 135 million euros from the French Development Agency (AFD) to finance the “program operation for the development policy of green growth”. Serbia could take another loan from this financial institution in the future in the maximum amount of 135 million euros, it can be seen from several agreements that were sent to the parliamentary procedure.
If both of these loans are realized in these maximum amounts, Serbia will borrow 270 million euros from AFD for the “development policy of green growth”.
On Friday, September 22nd, the Government of Serbia referred the “Framework agreement on credit lines for financing the program operation for the development policy of green growth in Serbia” to the parliamentary procedure.
The framework agreement was concluded on June 26th between the French Development Agency and the Republic of Serbia and it defines in advance the general conditions that apply to loans that can be made available to Serbia for financing the various phases of the green growth development policy program.
In the framework agreement, the French Development Agency agreed to make two loans available to Serbia for that program in a total amount not exceeding 270 million euros.
The loans will be made available under the general conditions provided by the framework agreement, while the special conditions for taking these two loans will be prescribed by a separate agreement on the first loan and a separate agreement on the second loan.
The special agreement on the first loan is already in the parliamentary procedure. It provides that a loan of 135 million euros will be made available to Serbia. The deadline for withdrawing these funds is February 15, 2024.
If Serbia makes progress in implementing the program, AFD can make available another loan in the amount of a maximum of 135 million euros – or in any other amount that the parties agree on.
The goal of the program is to support the green transition in order to encourage institutional reforms and reforms of public policies with the aim of “greening” the macroeconomic and fiscal framework, increasing Serbia’s resistance to the negative effects of climate change, strengthening ecological sustainability and modernizing the energy sector.
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