State to guarantee for more than EUR 200 million of new credits for Srbijagas

The state plans to approve guarantees to Srbijagas for new credits, which the members of the National Assembly of Serbia will decide on during the current session. If the parliament adopts the four bills related to these borrowings, the total amount of new guarantees for the credits for Srbijagas will be EUR 201 million. That means that the state obliges to repay the debts instead of Srbijagas if the company is not able to do so.

The first of the proposed bills concerns the guarantees to Banka Postanska stedionica, in the amount of up to EUR 51 million, increased by the agreed interest, which consists of a three-month EURIBOR increased by a bank margin of 2.2%. The credit agreement was signed, just like the other three, on November 15. Srbijagas took out this loan in order to develop the distribution network, including the strengthening of transport and storage capacities of gas pipelines in Serbia.

Then, the state will provide a guarantee for the credit that, in addition to Banka Postanska stedionica, Banca Intesa also approved to Srbijagas. Srbijagas will borrow EUR 45 million from Banca Intesa and an additional 15 million from Banka Postanska stedionica. The agreed interest is a three-month EURIBOR increased by 1.2% annually. This loan will be used to finance the construction of the Leskovac-Vranje gas pipeline.

Srbijagas has borrowed the same amount, EUR 60 million, from Banka Postanska stedionica (15 million) and OTP Bank (45 million), for the construction of the stations Horgos, Banatski Dvor underground gas storage facility and Loznica. The interest on this loan is a three-month EURIBOR increased by 1.45%.

The fourth credit has been taken out by Srbijagas only from Banca Intesa. It is a loan of EUR 30 million, and the proceeds will be used for the construction of the Belgrade-Valjevo-Loznica gas pipeline. The interest is a three-month EURIBOR increased by a bank margin of 1.22%.

Srbijagas cannot take out loans without state guarantees anyway. These guarantees later become part of the public debt.

JP Srbijagas Novi Sad

Banka Poštanska štedionica a.d. Beograd

PE Srbijagas Novi Sad

Poštanska štedionica Beograd

Srbijagas credits

guarantees for Srbijagas credits

Leskovac Vranje gas pipeline

Belgrade Valjevo Loznica gas pipeline

Banatski Dvor gas storage facility