Minister of Environment, Mining and Spatial Planning Oliver Dulic today stated that the completion of Vojvoda Stepa Stepanovic residential project in Vozdovac, Belgrade, requires an additional loan of around €35 million.

At a parliament session, which will look at 13 legal proposals ratifying guarantees for new loans of the state, Dulic called upon MPs to endorse these acts so that projects which require these finances can be completed.

These acts include guarantees to Hypo Alpe Adria Bank and Societe Generale for settling the debts of the Serbian Construction Directorate on the basis of an agreement on loan for the construction of residential and office blocks at the former Vojvoda Stepa Stepanovic barracks in Belgrade.

These are not loans for public spending, the Minister underlined, explaining that additional funds are needed to complete the housing project.

The global crisis has severely struck all world economies and the largest drop has been recorded in the construction and real estate sectors, he noted.

This negative trend is also present in Serbia, which is why in 2009 the government adopted a Law on assistance to the construction industry and launched several large projects to secure jobs in this sector.

Dulic said that thanks to these projects, among which is the construction of Vojvoda Stepa Stepanovic residential area, Serbia managed to achieve good results and conclude the year with a 17% growth in the construction sector.

The project to assist the construction industry has so far secured jobs to 80,000 construction workers, the Minister concluded.