Belgrade/Moscow, 7 April 2010 (Serbia Today) – Minister of Finance Diana Dragutinovic and Russian Deputy Minister of Finance Dmitry Vladimirovich Pankin signed a loan agreement today worth $200 million that the Russian Federation approved for Serbia. Dragutinovic said that the funds approved for Serbia will be used as support to its budget and for financing its deficit.
The agreement could have been signed in 2009 but this was postponed so as to avoid changes in Russian regulations, she explained. Dragutinovic said that the negotiations on signing a loan agreement to finance infrastructure projects in Serbia will be intensified in May. Both loans were initiated by Serbian President Boris Tadic in a letter that he sent to President of the Russian Federation Dmitry Medvedev in March last year. The grace period will last until March 2012 and the deadline for repayment is the end of 2021. The annual interest rate will be determined on the basis of LIBOR for six month deposits denominated in dollars, plus 2.95%.Under the agreement, Serbia has the right of early repayment of the loan, without paying any penalty interest .
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