The Government of Serbia plans to borrow USD 608.3 million from the Chinese Export-Import Bank for the construction of the Fruska Gora Corridor, that is, the Novi Sad-Ruma fast route.
The government has put into the parliamentary procedure the Law on confirming the loan agreement on the credit for a favored purchaser for the project of the construction of the fast route Novi Sad-Ruma (Fruska Gora Corridor) between the Government of Serbia, represented by the Ministry of Finance, as the borrower, and the Chinese Export-Import Bank, as the lender.
In October 2020, the Commercial agreement on the designing and execution of works on the construction of the fast route Novi Sad-Ruma (Fruska Gora Corridor) was signed between the Government of Serbia, Roads of Serbia, Corridors of Serbia and China Road and Bridge Corporation.
According to the commercial agreement, Serbia is to use the proceeds from the loan to cover 85% of the value of the project, whereas the rest, 15%, is to be covered from the budget.
The agreed price for the preparation of the project-technical documentation, the execution of the works and the delivery of the goods, according to the commercial agreement, is USD 715.7 million. According to the Law on the Budget for 2020, the borrowing of Serbia from Chinese banks in the amount of up to USD 608,385,000 is allowed. According to the Law on the Budget for 2021, the allowed borrowing for said project increased to USD 610 million, whereas the same article of the Law on the Budget for 2022 cites the exact amount of USD 608,384,610.
The loan maturity date is 20 years, including the grace period of five years. The period of the repayment of the principal amount is 15 years in 30 semi-annual installments, which are due each May 15 and November 15.