Govt set to take over Air Serbia's financial obligations

In August last year, Etihad Airways signed a strategic partnership deal to acquire 49% of then state-owned JAT Airways while getting a five-year management contract for the airline and rebranding it to Air Serbia. The remaining 51% stake in the flag carrier is held by the Serbian government.

As part of the deal, the Serbian government had vowed to take over the debts of JAT Airways.

Converting Air Serbia's obligations into public debt is regulated by a bill that the government has submitted to parliament for ratification, the text of the bill posted on the website of Serbia's legislature indicated.

According to the document, Air Serbia's obligations tower to over 19 billion dinars ($194 million/155.3 million euro), based on the December 16 exchange rates for the dinar.

(1 euro=122.3092 Serbian dinars)