Serbian parliament provides guarantee for EUR 74 million loan for EPS

Serbian MPs agreed today to provide a state guarantee for a EUR 74 million loan to be taken out by the public company EPS (Electric Power Company of Serbia).

MPs adopted the law on the provision of a state guarantee to the German Development Bank KfW, Frankfurt am Main for a loan to be extended to the Electric Power Company of Serbia for the exploitation technology improvement project in Kolubara Mining Basin, which is aimed at increasing the efficiency of thermal power stations and reducing their impact on the environment.

KfW Bank will grant the total of EUR 74 million, EUR 65 million of which will be lent, whereas the remaining EUR 9 million will be donated by that bank.

KfW has requested from Serbia to provide a guarantee for the amount of EUR 74 million because they want to secure themselves in case the donated funds fail to be used as agreed and EPS is unable to return them.