The World Bank has frozen a loan of 50 million dollars, because the highway will increase the public debt

The World Bank (WB) will not approve a loan of 50 million dollars (about 36,2 million euros), which was previously announced as direct support to the budget, because the state will increase its public debt this year due to the first loan for highway construction, "Vijesti" has learned.

The condition of the SB for the approval of direct support to the budget (DPL arrangement) is the stabilization of the public debt. The Ministry of Finance neither confirmed nor denied this information to "Vijesti", while answers are expected from the World Bank.

For years, the government took loans to cover regular obligations - payment of pensions, salaries from the budget and social benefits, as well as payment of due installments on old loans, and the money was not directed to any significant capital project.

Read more in the printed edition of "Vijesti" from March 2

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