The Serbian Government is preparing to approve state guarantees for new loans taken out by the gas company Srbijagas. If the four proposed bills are approved by parliament, the total value of these guarantees will amount to 201 million euros. In the event that Srbijagas fails to repay its debts, the government would assume responsibility for the repayment.
The first bill covers a guarantee for a loan of up to 51 million euros from Banka Postanska Stedionica, with interest calculated as the three-month EURIBOR plus a 2.2% margin. This loan, which was signed on November 15, is intended to fund the expansion of the gas distribution network, including improvements to transportation and storage capacities.
The second guarantee involves loans from both Banka Postanska Stedionica and Banca Intesa, totaling 60 million euros. Of this, 45 million euros will come from Banca Intesa, and 15 million euros from Banka Postanska Stedionica, with an annual interest rate of three-month EURIBOR plus 1.2%. These funds are earmarked for the construction of the Leskovac-Vranje gas pipeline.
A third loan of 60 million euros has been secured from Banka Postanska Stedionica (15 million euros) and OTP Bank (45 million euros). These funds will finance projects such as the Horgos and Banatski Dvor underground gas storage facilities, with an interest rate of three-month EURIBOR plus 1.45%.
The fourth loan, worth 30 million euros, comes solely from Banca Intesa. These funds will be used for the construction of the Belgrade-Valjevo-Loznica gas pipeline, with an interest rate of three-month EURIBOR plus 1.22%.
By law, Srbijagas is unable to secure loans without state-backed guarantees, which, in turn, contribute to Serbia’s public debt.
