Serbia has requested a new loan for railways from Russia

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Serbia has requested a new loan from Russia in the amount of EUR172.5 million, in order to fund construction of a Main Dispatch Centre for management of train traffic in Serbia and construction of railway infrastructure, and the agreement on Russian loan should be signed in the first half of 2019, Radio Free Europe (RFE) has announced today.

According to the RFE website, this information is confirmed by the Serbian Ministry of Construction, Transport and Infrastructure.

The enterprise “Infrastruktura zeleznice Srbije” and RZD International (Russian Railways) signed an agreement on construction of the Main Dispatch Centre and overhaul of railway infrastructure on January 17th, 2019, during the visit of Russian President Vladimir Putin to Serbia. The value of this agreement is EUR230 million, and agreement stipulates that EUR172.5 million euros of that amount will be secured via loan.

“The Ministry of Finance approached the Russian Federation with this request at the end of 2018. The next step for the new Russian loan implies harmonization of the Intergovernmental Agreement between the Government of the Republic of Serbia and Government of the Russian Federation on Russia’s new export loan,” stipulates reply of the Ministry of Construction, Transport and Infrastructure to RSE.

Source: Beta/RSE

Photo: Pixabay