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Serbia receives €45 million loan for railway and medical equipment

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Belgrade/Madrid, June 13, 2005 - Serbian Minister of International Economic Relations Milan Parivodic told the Serbian government's official web site that out of a €50 million loan approved after the signing of an agreement on financial cooperation between Serbia-Montenegro and Spain, €45 million will be used for the modernisation of railway and the purchase of medical equipment for the Republic of Serbia.
Minister Parivodic, who is member of the state union delegation on a visit to Madrid, said that by signing the agreement, Serbia-Montenegro committed to the investment of 70 percent of the loan's value on goods and services originating from Spain.

Parivodic said that the loan was approved under very favourable terms, with a 16-year repayment period, a five-year grace period and a 1.2 percent interest rate.

According to the Minister, in addition to the €50 million loan, Serbia-Montenegro will also receive a donation worth €1 million, 90 percent of which will be addressed to Serbia, and 10 percent to Montenegro.

Following the signing of the agreement today, the delegation of the state union met with representatives of the Spanish Ministry of Economy, and later in the day will meet with representatives of the Spanish Ministry of Foreign Affairs.

Minister Parivodic said that Spanish state representatives have shown great interest in the Serbian market. However, as the volume of trade with Spain is low, the Serbian investment climate will be presented and promoted to Spanish businessmen tomorrow at the Association of Chambers of Commerce.