Serbia is not having additional costs on World Bank and EIB’s approved credits

Assistant Minister of Finance Zoran Ćirović said that Serbia is not having additional costs in reference to the approved funds from the loans, credits and donations from the World Bank and European Investment Bank, regardless of the fact that those agreements have been signed year ago and still have not been ratified by the Serbian Parliament.

In statement given to the Tanjug news agency, Ćirović pointed that 11 international financial agreements are on extraordinary Parliament session’s agenda, and when adopted, necessary conditions for loans, credits and donation’s usage, worth 286.22 million Euros and approved by the WB and EIB, will be established

Assistant Minister of Finance Zoran Ćirović said that Serbia is not having additional costs in reference to the approved funds from the loans, credits and donations from the World Bank and European Investment Bank, regardless of the fact that those agreements have been signed year ago and still have not been ratified by the Serbian Parliament.

In statement given to the Tanjug news agency, Ćirović pointed that 11 international financial agreements are on extraordinary Parliament session’s agenda, and when adopted, necessary conditions for loans, credits and donation’s usage, worth 286.22 million Euros and approved by the WB and EIB, will be established

“We don’t have any additional costs regarding those funds’ usage, and misunderstanding occurred due to the fact that they have been paid in the past. The World Bank has on October 23, 2007 formally informed then Minister Mirko Cvetković on amendments to the General Conditions on the Loans of the International Bank for Reconstruction and Development (IBRD), according to which, usage costs have been abolished”, he explained.

According to him, access remuneration has been reduced from 1 to 0.25 percent, which additionally helped overall debt-related costs reduction at the World Bank.

Ćirović specified that those amendments are being implemented retroactively on all loan agreements signed with the IBRD as of May 16, 2007, including those pending on Parliament’s ratification signed on July 27, 2007.

Serbia is paying certain access remuneration which is not related to the ratification delay, but only to the entry into force of the mentioned agreements, he said and added that disbursement costs haven’t at all existed at the European Investment Bank.

He reminded that this bank in Serbia is participating in realization of three projects – one refers to the roads and bridges’ rehabilitation, second is “Gazela” bridge repair, and the third one refers to the clinical centers in Serbia.

Assistant Minister said that certain damage has been made by the long wait on ratification because in the meanwhile, oil prices, building material and other inputs’ prices have been increased at the international markets.

When agreements come in force, only Government’s decision is necessary to withdraw credits’ tranches, and that is a technical matter which can be done in a very short time because it does not require complex and long-lasting procedure necessary for international arrangement’s ratification, Ćirović concluded.