Government takes out loans from 10 banks to cover budget deficit

The Parliament of Serbia yesterday adopted a law that enables the state to take out loans from 10 business banks to cover the budget deficit.

The loans will be taken out from KBC Banka, Nova Kreditna Banka Maribor, Eurobank EFG, Vojvodjanska Banka, Hypo Alpe Adria Bank, Erste Bank, Banca Intesa, UniCredit Bank, Raiffeisen Bank and Societe Generale Bank.

The repayment period for these loans is five years with one-year grace period.

The Parliament also adopted the Law on allotment of state guarantees in favor of Societe Generale Bank and UniCredit Bank for the loan of 51.5 million euros that these banks have granted to Jat Airways. Of that amount, 40 million euros are intended for revitalization of that company, 9.5 million euros for revitalization of the fleet, while 2 million euros will be spent on the procurement of two airplanes of new generation.

The repayment period for that loan is six year with two-year grace period, while installments are to be paid every six months.

The Parliament also confirmed the Contract concluded between the Government and Chinese Export-Import Bank on the government's concession loan for procurement of scanners for control of containers and vehicles from the Nuctech company.