The government has given consent for the Regional Waterworks to refinance the loan it took from the Abu Dhabi Development Fund in order for the company to reduce the costs it had due to exchange rate differences since the loan was in US dollars.
The loan was taken out 10 years ago in the total amount of 9,8 million euros, and 6,8 million euros still remain to be repaid.
"The loan was for 15 years with a grace period of three years, an interest rate of 4,5 percent and administrative processing of 0,5 percent. The regional water supply company suggested that the loan be refinanced because it has costs due to the change in the exchange rate on the currency market," Assistant Minister of Finance Dragan Darmanović explained today after the Government session.
He said that four domestic banks (NLB, Adiko, Prva and Erste) submitted offers for refinancing to Regional Waterworks, and that Erste made the best offer.
"It is a loan for a period of 10 years, interest 3,5 percent and processing cost 0,2 percent. This loan is justified because the Regional Water Supply will reduce the risks it has, it will have fixed obligations and will know the dynamics of loan repayment," said Darmanović.
See more:
Download the app and follow the news
FOLLOW US ON
