Serbia in talks with UAE over 300 mln euro loan for agriculture projects - fin min

Part of the financing, if an agreement is reached with the UAE, would be used by the state to clean the existing irrigation canals in Vojvodina as their capacity can be increased by 50% this way, Dinkic said in a statement published on the ministry's website on Sunday, adding that a secondary network in Vojvodina and an irrigation system in central Serbia have also been planned. Part of the funds would be used for long-term loans to farmers and to companies.

The idea is to triple food exports to 6.0 billion euro during the term of this government, Dinkic noted. Serbia aims to offset the impact of the eurozone crisis by finding other markets.

Тhе Serbian government signed a memorandum of understanding with the UAE in October, which would serve as the basis for an intergovernmental accord due to be signed over the coming months, the government said then, adding that several agreements with UAE-based agricultural company Al Dahra are also in the making. Serbia would pay off for the funding through guaranteed multi-year supplies of various agricultural products that would be exported by а joint company with Al Dahra to the UAE market as well as to third countries.

For the credit line with a grace period of five years, a repayment period of 20 years and with most favourable terms, Serbia is negotiating with the Abu Dhabi Development Fund.

($=0.7531 Euro)