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World Bank delays decision on loan for Serbia

January 25, 2014

According to previous statements by World Bank representatives, the Board of Directors should decide on February 27 whether to grant Serbia the USD 250 million worth of loan as budget support. Serbia could make use of the funds as soon as the parliament ratifies the agreement. In early December, Director of the World Bank Office in Serbia Tony Verheijen said that the condition for the loan to be granted was the adoption of the budget, privatisation law, bankruptcy law and law on construction permits. On December 30 , the Serbian government adopted the draft law on privatization and the amendments to the Bankruptcy Law and forwarded the document to the parliament for adoption on urgent procedure. The laws are the grounds for the beginning of work of the Transition Fund which envisages that RSD 20 billion should be transferred as payment of overdue salaries and ensuring uninterrupted years of service for employees, as well as redundancy pay for employees in restructuring companies.

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Source: Legal Monitor Worldwide

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