Last week, the Serbian government submitted proposals to the National Assembly for new loans totaling approximately €410 million.
The country plans to borrow from the European Investment Bank (EIB), the International Bank for Reconstruction and Development (IBRD), Germany’s KfW Development Bank, and the French Development Agency.
From the EIB, Serbia will take €100 million to continue modernizing the Niš–Dimitrovgrad railway. The total cost of this project has nearly doubled since its initial estimate in 2017, rising from €268 million to €502 million. Of this total, €234 million will come from EIB loans, €162.08 million from Serbia’s budget, and €105.92 million from the Western Balkans Investment Framework (WBIF). Serbia previously borrowed €134 million from EIB for this railway in 2018. The repayment period for this loan is 25 years, with interest rates determined at the time each tranche is drawn.
Serbia will also borrow €27.2 million from the IBRD to modernize its tax administration, aiming to reduce workload on staff through automation. Repayments will occur semiannually over ten years, with a three-year grace period.
Additionally, Serbia will take €135 million from Germany’s KfW for energy sector reform and environmental protection, with a 15-year term and a five-year grace period, repaid in 20 equal semiannual installments.
From the French Development Agency, Serbia secured two loans: €12 million for reconstruction and digitalization of the 110 kV Pančevo 1 facility under EMS, and €135 million for green growth initiatives, marking the second tranche of this program.
As of the end of July, Serbia’s public debt stood at €38.3 billion, representing 43.4% of projected GDP for 2025.
