Government Withdraws Draft Law on Provision of Guarantees for Srbijagas Credit

The Government of Serbia has withdrawn the Draft Law on the Provision of Guarantees for the Credit of Srbijagas in the total amount of EUR 70 million, which was supposed to be on the agenda of today’s session of the National Assembly of Serbia.

According to the draft law, state guarantees would have been provided for the loan of Srbijagas from three banks for the construction of the gas pipeline from the Bulgarian border to Hungary and the borders with other neighboring countries.

The credit would have been taken out at Vojvodjanska Banka, OTP Bank and Postanska Stedionica in dinar countervalue with a FX clause, for six years, including a grace period of two years, at an annual interest rate of 1.70% to 1.75%, plus a three-month EURIBOR.

The money would have been used through investments in the capital of South Stream AG, registered in Switzerland.

Vlada Republike Srbije

JP Srbijagas Novi Sad

Vojvođanska banka a.d. Novi Sad

Banka Poštanska štedionica a.d. Beograd

OTP banka Srbija a.d. Novi Sad

Government of Serbia

Srbijagas

South Stream AG

Vojvođanska banka

Poštanska štedionica

OTP bank

Draft Law on the Provision of Guarantees for the Credit of Srbijagas

state guarantees

construction of a gas pipeline

gas pipeline from Bulgaria to Hungary

EURIBOR