Serbia Considers Loan from China to Finance Construction of Belgrade Underground Railway – Econ Minister

Last week Serbian officials expressed  before the Chinese government interest in a loan that would be used for the construction of the Belgrade underground railway, Dinkic said in a statement posted on the ministry’s website on Sunday. He did not elaborate on the size of the loan.

Turkey borrowed 700 million euro ($893 million) at an annual interest rate of 2.5% from the Chinese government to finance its infrastructure upgrades, Dinkic said in the statement, adding that if offered such credit terms by any other country Serbia should accept them.

Traffic gridlock and poor infrastructure are a serious problem in Belgrade, a city of some 1.6 million people according to a 2002 census.

The construction of the Belgrade underground railway pends approval by the city and state parliaments, head of the information department of the Belgrade Land Development Public Agency, Nenad Bajic, told SeeNews. “It is part of the urban plan but it is up to the city and the state when and how its construction will be financed,” Bajic said.

($ = 0.7819 euro)