World Bank Approves Programmatic Private and Financial Development Policy Loan for Serbia

Contacts:  In Washington:Michael Jones, (202) 473-2588
mjones2@worldbank.org
In Belgrade: Mirjana Popovic (+381) 30 23 747
mpopovic@worldbank.org

 

WASHINGTON, March 5, 2009 – The World Bank Board of Executive Directors today approved the Programmatic Private and Financial Development Policy Loan (PFDPL) for Serbia in the amount of €34.9 million to help the country meet its economic growth-related goals consistent with its aspirations for eventual membership in the European Union.

 

The loan will support the Government of Serbia’s reform actions by enhancing the business environment to encourage new business and to attract foreign direct investments.  It will also strengthen financial discipline by enhancing hard budget constraints in the enterprise sector through continued reform of socially owned enterprises and restructuring of public utilities.  And finally, the loan will help build a more efficient and stable financial sector by strengthening prudent supervision of the banking sector and encouraging development of the capital markets.

 

The DPL will finance a €34.9 million International Bank for Reconstruction and Development (IBRD) budget support loan, which is the first in a series of three programmatic Development Policy Loans designed to support a multi-year program of assistance to the Republic of Serbia to address key institutional building and reform challenges in both private and financial sectors.

 

The loan will be provided on standard IBRD terms, with 20 years maturity, including an 8-year grace period.