A lending agreement governing a EUR300 million loan approved by the European Bank for Reconstruction and Development (EBRD) to reform Elektroprivreda Srbije (EPS) national power utility was signed in Belgrade, on March 15.
It’s the second largest loan the EBRD has approved to Serbia, having already invested a total of EUR7.9 billion in this market, the Ministry of Finance reported. The loan, guaranteed by the Ministry of Finance on behalf of the state, will be released in two tranches to address a liquidity gap that occurred due to a spike in electricity imports.
Finance Minister Sinisa Mali described the loan as support by international financial institutions to the Government’s de-carbonization drive for the electricity sector, including a coal phase out strategy by 2050. The minister said the loan would also help develop a regulatory framework for the development of renewable sources of energy and introduction thereof, while securing a steady energy supply.
The EBRD provided a total of EUR650 million for projects in Serbia in 2022, of which three-quarters supported projects in the private sector.