The Government is negotiating with the World Bank on new borrowing of half a billion euros

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The Government of Serbia is conducting negotiations with the World Bank on new borrowing of more than half a billion euros, to improve the budget system, invest in green energy and reform financial management, Bloomberg Adria has learned.

Negotiations are underway on the approval of three loans, the largest of which, in the amount of 400 million euros, would be intended for the improvement of the economy, social development, poverty reduction and green projects, adds Bloomberg.

The Government of Serbia, it is added, plans to borrow 35 million for the improvement of the capital market, and these two loans should be contracted at the beginning of next year.

The third loan of 75 million euros would be intended for financial management reform.

The leading economist of the World Bank, Lazar Šestović, said that these loans are being negotiated within the framework of the fund of one billion dollars, which is designated for Serbia.

According to all the economists from the SB at the media conference held in Belgrade, borrowing in times of crisis is normal for governments globally, but it is important for the country to be on a sustainable path of economic development, as well as for what purposes those loans are used, according to Bloomberg Adria.

Serbia reached an agreement with the International Monetary Fund on a standby arrangement in the amount of 2.45 billion euros, while earlier this year it already took a billion dollar loan from the United Arab Emirates, Danas writes.