Government Withdraws Draft Law on Provision of Guarantees for Srbijagas Credit
According to the draft law, state guarantees would have been provided for the loan of Srbijagas from three banks for the construction of the gas pipeline from the Bulgarian border to Hungary and the borders with other neighboring countries.
The credit would have been taken out at Vojvodjanska Banka, OTP Bank and Postanska Stedionica in dinar countervalue with a FX clause, for six years, including a grace period of two years, at an annual interest rate of 1.70% to 1.75%, plus a three-month EURIBOR.
The money would have been used through investments in the capital of South Stream AG, registered in Switzerland.
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