BELGRADE (Serbia), October 6 (SeeNews) – Russia will provide Serbia with up to $350 million (238 million euro) in financial support for the country’s gaping budget deficit and a further $650 million for major infrastructure projects, Serbian daily Vecernje Novosti reported on Tuesday.
“We intend to allocate $350 million for Serbia to cover its budget gap, while a further $650 million could be used to fund large infrastructure projects, most importantly the construction of an underground railway and the Belgrade beltway,” Vecernje Novosti (www.novosti.rs) said, quoting Russian Finance Minister Alexei Kudrin as telling a news conference in Istanbul on Monday during an annual meeting held by the International Monetary Fund (IMF) and the World Bank.
The part of the funds that will be earmarked for closing the budget gap is likely to be disbursed this year, while the infrastructure portion will be made available next year, Vecernje Novosti said, quoting Kudrin.
Kudrin said earlier that Russia may adopt relevant legislative changes to make possible providing the funds to Serbia in 2009 as the Balkan nation is not among countries that have been approved for aid for this year.
The details of the Russian aid package will be made public during Russian President Dmitriy Medvedev's visit to the Balkan country later this month, Serbian broadcaster b92 (www.b92.net) reported on Tuesday, quoting Serbian Foreign Minister Vuk Jeremic.
IMF Resident Representative in Serbia Bogdan Lissovolik said last month that the Balkan country should aim for a budget deficit of 3.5% of gross domestic product (GDP) next year to strengthen its fiscal balance. The IMF agreed last month to a rise in Serbia's 2009 budget deficit forecast to 4.5% of GDP from the 3.0% set initially under a 3.0 billion euro loan deal struck with the international lender in March.
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