Albania should soon commence with repaying its USD 8.5 million debt to Serbia amounting incurred during the former Socialist Federal Republic of Yugoslavia (SFRJ) on the basis of trade between Albania and the former Yugoslavia.

The Serbian government proposed to the Serbian parliament to ratify an agreement with the Council of Ministers of Albania on the settlement of the country's debt to Serbia.

The document regulates the paying of the debt based on calculations related to the trade between Albania and the former Yugoslavia.

The agreement envisages calculating a regular interest rate on the basis of the specified debt, which amounted to somewhat more than USD 8.5 million on September 30, 2009.

Albania has five years to repay the debt, without a grace period, and the payment dates are March 31 and September 30 every calendar year.

Any delays in payment of principal and interest will incur a default interest. The government proposed to the parliament to ratify the agreement on an expedited basis, as it is in Serbia's interest that Albania begins the payment of the liabilities as soon as possible.