The Government of Serbia has approved a Bill to confirm a credit agreement with Deutsche Bank (Hong Kong branch) for up to €178.38 million, aimed at financing the construction of the Belgrade Metro. The loan will be made available for five years, with JKP Belgrade Metro and Train as the beneficiary.
The repayment period for the loan is set at 13 years, which includes a 5.5-year grace period. The interest rate will be variable, based on the 6M EURIBOR plus a fixed margin of 1.65% per year. Additionally, a commission of 0.65% will be charged on any undrawn funds, payable semi-annually during the availability period.
Funding for the implementation of this law will be allocated in the Serbian budget. The construction of the metro is considered a significant project for Belgrade, particularly since it is one of the few European capitals without a metro system.
Furthermore, the 2024 Serbian Budget Law allows for borrowing from foreign investment corporations, funds, and banks for the first phase of the Belgrade Metro Construction Project, totaling up to €1.5 billion.
