Nobody wants to guarantee for credit for "Southern stream"

What stopped investment said to be the crucial one Nobody wants to guarantee for credit for "Southern stream"

The ‘Southern Stream’ project in Serbia is at standstill at the moment because of the problem of securing state guarantees for the loan necessary for a foundation investment for a joint venture.

- This problem has been postponing the project for two-three months already. It is an obstacle to announcement of a tender for a contractor and beginning of works – the Prime Minister Ivica Dacic claims.

On the other hand, the Ministry of Finance claims that ‘it has to be clear in what way the credit shall be returned’.

- The money we are talking about is huge, potentially we are talking about two and more billion Euros. It has to be clear from where that money shall come, who shall repay it and what guarantees for it can be given, having in mind the complete financial construction – the Finance Minister Lazar Krstic explains.

At yesterday held Business Forum, the Srbijagas General Director Dusan Bajatovic also spoke about problems related to the ‘Southern Stream’. He claims that Serbia is not giving guarantees to the Srbijagas for construction of the ‘Southern Stream’ gas pipeline, but that a loan for that investment has been agreed with the Russian Gazprom and that it would be returned through dividends.

- In case of delay in construction of the ‘Southern Stream, the Gazprom Export who rented the capacities shall pay all costs of a credit that the Srbijagas shall have to take for additional investing of the project.

According to his words, the Srbijagas had last year a loss of 40 billion...