December 4 (SeeNews) - Serbia plans to repay a 170 million euro ($207 million) outstanding debt to Azerbaijan under a loan for the construction of a Corridor XI road section by the beginning of 2021, President Aleksandar Vucic has said.
The repayment of the 170 million euro debt will reduce Serbia's public debt-to-gross domestic product (GDP) ratio by 0.42 percentage points to 58.5%," Vucic said in a video file posted on the YouTube channel of public broadcaster RTS on Thursday.
The debt will be repaid to Azerbaijan by the end of this year, or at the beginning of 2021 at the latest, as the loan has a fixed interest rate of 4.0%, which is too high, Vucic noted.
Serbia agreed to receive a 300 million euro loan from the Azeri government for the construction of the Preljina-Ljig section of Corridor XI in 2012. The construction works were carried out by Azeri construction company Azvirt.
($ = 0.821369 euro)