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Belgrade city govt to borrow 31 mln euro for new buses in 2020

Author Radomir Ralev
Belgrade city govt to borrow 31 mln euro for new buses in 2020 Goran Vesic; Source: Belgrade city government

BELGRADE (Serbia), October 25 (SeeNews) - The Belgrade city government plans to draw a 31 million euro ($34.5 million) loan in 2020 in order to buy articulated buses for public transport company GSP, deputy mayor Goran Vesic said.

The investment is planned in the city budget for 2020, which envisages a deficit of 3.37%, or a total of 3.4 billion dinars ($32.2 million/28.9 million euro), Vesic said, as quoted in a statement by the Belgrade city government on Thursday. 

"The expenses will be 106.1% higher compared to 2013, with a special emphasis on providing funds for the procurement of new vehicles for public transport purposes, such as new buses, trolleybuses and electric buses in the amount of 7.284 billion dinars," Vesic said.

Belgrade's total debt is expected to stand at 353.8 million euro at the end of next year, he added.

In September, Moody's Public Sector Europe (MPSE) affirmed the Ba3 long-term issuer ratings of Belgrade, while keeping the city's baseline credit assessment (BCA) of ba3. Belgrade's rating is underpinned by its declining and manageable direct debt burden at 44% of operating revenue at year-end 2018 and its crucial role as the capital city and the country's largest economic hub, accounting for almost 40% of national gross domestic product (GDP).

($ = 0.8991 euro)