Serbian Government adopted the draft Law on the Reimbursment of the loan for the economical rebirth of Serbia

The government loan for the economical rebirth of Serbia was officialized in 1980. and the total sum collected from the donations was 88.1 million US dollars, but consequently to the interest rate, the total debt raised up to 151.1 million dollars. During the period from 1994. to 1999. 108.4 million were reimursed to the crefitors, and the remaining sum is now 50.5 million euros. Serbian Government adopted the Law on the Reimbursment of the loan for the economical rebirth of Serbia, and proposed it to the parliamentary ratification, said Mr. Bozidar Djelic, minister of finance and economy in the Government of the Republic of Serbia.

“This debt will be totaly reimbursed to the citizens by the of the current year. Saying this, I primarilly mean those creditors whose debt claim is up to 500 Eiros, and all the other creditors will recieve a high-quality “eurobond” of the government bond which term is the year 2006. They have the opportunity either to place it on a stock/bond market or wait until 2006 for the mentioned term of payment. According to the Minister Djelic’s words, the Republic of Serbia already allocated 650 million dinars to this year budget, something near 10.5 million Euros, for the reimbursment of the 10.000 creditors claiming up to 500 Euros. This will be sufficient to pay back the two thirds of the total number of creditors, whose total payment claim raises up to 50.5 million Euros. There will remain some 40 million Euros of debt claimed by some 6.000 creditors from Yugoslavia and abroad. This sum will be coverted to the said “eurobond”, yhat can be traded on stock markets or paid back on the payment term ny the end of 2006. The “Eurobond” obligations quality is higher than the quality of the ordinary obligations, and on international valuable papers market, it’s value is estimated to be 15 percent higher than on the domestic stock market. These bonds will be issued two months after the expiration of the claim term which will begin with the law ratification. Every year five percent of the coupons will be paid, and the principal of the loan after the year 2006. payment term. All th creditors living abroad, must submit their claims to yugoslav consulary missions. These bonds have the same trading possibilities as the ones issued for the “old foreign currency savings”, and will be issued through the “Euroclear”. By the end of at most two months from now, the Government of the Republic of Serbia will choose on the basis of a public tender, one or two banks which will be designated to the servicing of the governmant debt, and they will be empowered to receive all the payment claims from the citizens. After the adoption of the law by the serbian Parliament , most probabilly by the end of october, the Government will initiate a 60 days deadline for the payment claim depositions. Djelic emphasized that this law is highly symbolic, because there was no meeting with the representatives of the serbian diaspora where the problem of the loan reimbursment inefficiency was not mentioned. On the list of the investors there are people living abroad, and have given hundreds of thousands Euros, and this will be a stimulation for them to reinvest in serbian economy. The reimbursment of this debt is also positively remarked in foreign financial circles, seeing in this gesture the commitment to comply with our State obligations guarantees, even if generated by the former regime, said Djelic, and remarking that the Government will create a guarantee fund, where the money from the state treasury will be allocated for the purpose of this loan reimbursment.