At the sitting held on 26 October, the Finance Committee members accepted the Bills on the indebtedness of the Republic of Serbia at KBC Banka a.d. Beograd, Nova Kreditna banka Maribor d.d., EUROBANK EFG a.d. Beograd, Vojvodjanska banka a.d. Novi Sad, Hypo-Alpe-Adria Bank a.d. Beograd and Erste Bank a.d. Novi Sad and at BANCA INTESA a.d. Beograd, UniCredit Bank Serbia a.d. Beograd, Raiffeisen bank a.d. Beograd and Societe Generale Bank Serbia a.d. Beograd which gave a joint offer; Granting Guarantee by the Republic of Serbia in favour of Societe Generale Bank Serbia a.d. Beograd and UniCredit Bank Serbia a.d. Beograd under the debt of JAT AIRWAYS a.d. Beograd air transport joint stock company; on the Confirmation of the Framework Agreement between the Government of the Republic of Serbia and the Government of the People’s Republic of China on securing the People’s Republic of China’s concessional loan for the Republic of Serbia and on the Confirmation of the State Concessional Loan Agreement for Project NUCTECH^TM system for the inspection of containers/vehicles between the Government of the Republic of Serbia as borrower and Chinese Export Import Bank as creditor, submitted by the Government of the Republic of Serbia and presented to the Committee members by Ministry of Finance representatives.

The Bill on the indebtedness of the Republic of Serbia at KBC Banka a.d. Beograd, Nova Kreditna banka Maribor d.d., EUROBANK EFG a.d. Beograd, Vojvodjanska banka a.d. Novi Sad, Hypo-Alpe-Adria Bank a.d. Beograd and Erste Bank a.d. Novi Sad and at BANCA INTESA a.d. Beograd, UniCredit Bank Serbia a.d. Beograd, Raiffeisen bank a.d. Beograd and Societe Generale Bank Serbia a.d. Beograd which gave a joint offer, deals with the business bank loan drawn by the state so as to finance the 250 million EUR budget deficit. The process was implemented via public procurement and the banks were selected by the most favourable conditions they offered i.e. 0.50% flat rate, three-month euribor and interest rate level.

According to the Bill Granting Guarantee by the Republic of Serbia in favour of Societe Generale Bank Serbia a.d. Beograd and UniCredit Bank Serbia a.d. Beograd under the debt of JAT AIRWAYS a.d. Beograd air transport joint stock company the state serves as JAT’s guarantor for three different credit arrangements related to revitalisation and refinancing of short-term obligations (40 million EUR), airplane engine repairs (9.5 million EUR) and procurement of two new generation airplanes (2 million EUR). It is also envisaged that the Government and JAT enter a contract allowing JAT to draw portions of these loans with the competent ministry’s previous consent.

Following a short debate, the Committee members endorsed both Bills in principle, by a majority of votes.

The Bills on the Confirmation of the Framework Agreement between the Government of the Republic of Serbia and the Government of the People’s Republic of China on securing the People’s Republic of China’s concessional loan for the Republic of Serbia and on the Confirmation of the State Concessional Loan Agreement for Project NUCTECH^TM system for the inspection of containers/vehicles between the Government of the Republic of Serbia as borrower and Chinese Export Import Bank as creditor define the conditions of the state’s concessional loan with the Chinese bank. The loan is favourable and financed by state funds which necessitated the signing of a Framework Agreement for the realisation of the project. The project pertains to the procurement of customs equipment in the amount of 30 million USD i.e. cargo control system at the Belgrade airport, procurement of 10 mobile truck control systems and 2 passenger vehicles control systems at border crossings. The loan conditions are a 3% fixed interest rate with a three-year grace period.

Following a debate, the Committee members endorsed these Bills as well, in principle, by a majority of votes.

The sitting was chaired by Zoran Krasic, Committee Chairperson.