German development aid to Serbia EUR 157 million

BELGRADE - Serbian and German government officials have signed on Thursday the protocol on development cooperation, envisaging a total of EUR 157 million for development projects in Serbia.

Development loans provided under favorable terms amount to EUR 138.5 million, including the EUR 70 million to be guaranteed by the Serbian government, while the remaining EUR 18.5 million are grants.

The aid will be used to fund projects in the fields of water supply, waste water treatment, energy and sustainable economic growth.

Director of Public Debt Administration Branko Drcelic stressed that the loans are granted under favorable terms, and that the state will either use the funds directly or provide loan guarantees for public companies or local authorities.

As an example, Drcelic pointed to the energy efficiency loan granted recently at a fixed interest rate of 2.1 percent, with a grace period of three years and a ten-year period of repayment.

Deputy German Ambassador to Serbia Michael Hasenau said that the protocol signed on Thursday shows potential for future cooperation.

Germany is the largest bilateral donor to Serbia, said Hasenau, stressing that his country supports Serbia on its road to EU membership.

Christiane Boegemann-Hagedorn, Deputy Director General for North Africa, Middle East, South-Eastern and Eastern Europe and Latin America at the German Federal Ministry for Economic Cooperation and Development, said that the protocol is a continuation of the cooperation established between the two countries over the past 15 years.

The aid will be used to fund projects in the fields of water supply, waste water treatment, energy - primarily energy efficiency and renewable energy...