World Bank approves EUR 183 million loan to Serbia for development policy

The World Bank Board of Executive Directors has approved a development policy loan to Serbia in the amount of EUR 182.6 million (USD 200 million), the global banking institution reported today.

This loan, the first in a proposed series of two public expenditure and public utilities development policy loans (PEPU DPL) supports the Government of Serbia's multi-year effort to raise the efficiency and effectiveness of public spending and transform the energy and transport sectors, the press release says. It is emphasized that these reforms are important strategic objectives in the context of Serbia’s EU accession process.

– A more efficient public administration and performing public utilities are among the critical missing links in making the Serbian economy more investment friendly. The reforms supported under this program will therefore help attract private investors and contribute to job creation – said Ellen Goldstein, the World Bank Country Director for the Western Balkans.

Regarding public expenditure management, the main challenge facing Serbia today is improving the quality of public services, such as education and health, while controlling the public sector wage bill.

The program supports reforms that will reduce public expenditures and address bottlenecks to improved delivery of these critical services to Serbian citizens.

Reforms include revising the legislative and policy framework for public sector employment, reforming the pay and grading system, and adjusting staffing levels in a structured manner.

Svetska Banka-WB Beograd

Vlada Republike Srbije

public expenditure

public enterprises

EU accession process of Serbia

Ellen Goldstein

managing public expenditure

public sector salaries

public sector employment

World Bank loan to Serbia