Serbian Prime Minister Mirko Cvetkovic and World Bank Managing Director Ngozi Okonjo-Iweala today reached agreement on a four-year arrangement envisaging a possibility that during this period, Serbia draws a $200 million loan each year.

Following the meeting, Cvetkovic told Tanjug news agency that the $800 million loan is the least available amount, and that Serbia will be able to draw additional funds from the World Bank if necessary.

This is the minimum sum and it can be increased, depending on our success in drawing the funds, the Prime Minister added.

They accepted my proposal to direct 50% of the funds towards covering the budgetary deficit and the remaining 50% to projects, he explained, adding that there will be a smaller number of larger projects in order to ensure efficiency.

World Bank funds are the cheapest loans that can be granted by an international financial institution, Cvetkovic observed, underlining that the previously agreed sum of around $400 million for road infrastructure is still at Serbia’s disposal.

Prime Minister Cvetkovic, who is in Washington attending the spring session of the IMF and the World Bank, will also meet with Russian Minister of Finance Alexei Kudrin.

The Serbian delegation comprises Deputy Prime Minister Bozidar Djelic and Governor of the National Bank of Serbia Dejan Soskic.