Erdogan to have Exim Bank's interest rate in Serbia lowered to 1.6%?

Minister of Trade, Tourism and Telecommunications Rasim Ljajic says that Turkish President Recep Tayyip Erdogan said during his visit to Serbia that Turkish Exim Bank might lower its interest rate to 1.6%, which would accelerate transportation and infrastructural projects.

Presidents of Turkey and Serbia, Erdogan and Aleksandar Vucic, discussed the Belgrade-Sarajevo and the Pozega-Boljare highways.

Ljajic added that the high interest rates of Exim Bank were one of the main reasons why those infrastructural projects had not yet been realized.

– Exim Bank had an interest rate of 6.5%, and then 4.8%, but it was unacceptable for us. Erdogan has now said that Turkish Exim Bank could be lending at interest rates of 1.6%. It remains to be seen whether this will happen – he said.

As he says, the dynamics and the quickness of the realization of these infrastructural projects will depend on this.

Serbia, he reminds, was among the top news in Turkish media for two days, which is important regarding both investors and tourists.

The extension of the free trade agreement and the excellent relations between presidents Vucic and Erdogan are an opportunity that local businessmen should not miss, he says.

Ljajic said that the Development Agency of Serbia had realistic expectations that, following the signing of numerous agreements and the announcement of the arrival of Turkish investors “4,000 new jobs will be created”.

Talking about the extended Free Trade Agreement, he said that the trade between Serbia and Turkey would amount to close to a billion euros in 2017 and that it had equaled EUR 850 million in 2016.

When asked whether there would be enough beef for export to Turkey, as an agreement for the export of 5,000 tons had been signed, he said that Serbia already had a surplus of 6,000 tons of beef for export and that it was in the interest of local producers to invest more.

Ministarstvo turizma i omladine Republike Srbije

Ministry of Trade Tourism and Telecommunications

Exim Bank

Rasim Ljajic

Recep Tayyip Erdogan

transportation infrastructure of Serbia

Belgrade Sarajevo highway

Pozega Boljare highway

beef