World Bank to decide on loans to Serbia on February 25

BELGRADE - The World Bank (WB) is likely to grant two loans to Serbia on February 25, USD 200 million for strengthening the Deposit Insurance Agency and USD 40 million for the Serbian healthcare system, WB Country Manager for Serbia Tony Verheijen said on Friday.

This financial institution will only start to negotiate with Serbia about a USD 250 million loan for the Serbian budget, which Serbia will be able to get after it introduces the required legislative framework- new laws on privatization and bankruptcy proceedings, and begins the restructuring of 153 state-owned and socially-owned companies, Verheijen told reporters.

The granting of the loan does not depend on the elections in Serbia, but on whether the government will meet its obligations, he said.

Serbia will hold early parliamentary elections on March 16.

The documentation for the loans amounting to USD 200 million and USD 40 million has been submitted, and the WB Board will decide on that on February 25, he said.

As for the USD 250 million loan for the Serbian budget, the World Bank is waiting for the government to take the agreed actions in relation to the restructuring of public companies and that loan will have to wait for the government to implement the promised measures, Verheijen said.

Photo sxc.hu/yokayo (illustration)