Serbian Finance and Economy Minister Mladjan Dinkic and his Russian counterpart, Anton Siluanov, signed today in Moscow an Agreement on an USD 800 million Russian loan for the Serbian railway company Serbian Railways.
Dinkic said that the loan would be spent on the modernization of the Corridor X railway route and the reconstruction of the Belgrade-Bar railway.
The first project to be financed from this loan will be the Belgrade-Pancevo railway and the works should start in spring this year.
Dinkic noted that both Serbian and Russian companies would take part in the modernization of the Serbian railways, added that lending terms and conditions were very favourable.
The repayment period is five years, interest is 4.1%, and the banks authorised to release the loan are the Russian state bank Vnesheconombank and the National Bank of Serbia (NBS).
The agreement on the Russian loan for Serbian Railways envisages the construction and electrification of 16 kilometers of the second track of the Belgrade-Pancevo railway and the construction of a single-track electrified railway from Valjevo to Loznica 68 kilometers long.
The funds are also earmarked for the rehabilitation of six sections of the railway line along the Corridor 10 in the length of 111 kilometers, modernization of the Belgrade-Bar railway and the purchase of diesel trains made in Russia.
Dinkic and Siluanov will also discuss in Moscow the allocation of a loan worth $1 billion as a support to the budget of Serbia.
As part of his working visit to Russia, Dinkic is also scheduled to meet with President of the Management Board of VTB Bank Andrey Kostin.