160 million Euros loans for budget deficit

Belgrade, April 24, 2010 (Serbia Today) - Finance Minister Diana Dragutinović signed loan contracts with three commercial banks on Wednesday. The loans worth EUR 160mn will be used to finance the budget deficit, a Ministry of Finance statement said. Marfin Bank, Erste Bank and Vojvodjanska Bank granted Serbia loans worth EUR 100mn, EUR 40mn and EUR 20mn respectively. The repayment period is five years, and the payments will be made in 48 equal installments, with a one-year grace period, the statement reads. It is further added that the interest rates approved by the banks are the most favorable ones that the state can get in the market for the time being. The granted interest rates are monthly euribor +4.5% fixed interest rate at Erste Bank, and monthly euribor +4.35% fixed interest rate at Marfin Bank a.d. Belgrade and Vojvodjanska Banka a.d. Novi Sad. The signing of the contracts was in keeping with the Budget Law for 2010. The contracts were signed on the basis of the Law on the indebtedness of the Republic of Serbia at Erste GCIB Finance I.B.V. Amsterdam, with Erste Bank a.d. Novi Sad as agent, Marfin Bank a.d. Belgrade and Vojvodjanska Banka a.d. Novi Sad.