World Bank approves EUR 300mn Serbia guarantee.

By bne IntelliNews February 14, 2011
The World Bank board of directors has approved a Private and Financial Sector Policy Based Guarantee (PFSPBG) for Serbia of up to EUR 300mn, the Bank said in a statement on its website. The World Banks guarantee would help the country to access international capital markets at a lower cost and longer maturity, the lender said. It also supports improving the business environment, increasing financial discipline in non-private enterprise sector, and building a stable and more efficient financial sector. "This policy based guarantee further advances Serbias strong track-record in structural reforms. The guarantee supports policies to improve the business environment, such as reducing compliance costs and making enforcement of court decisions faster and cheaper, and also to facilitate the resolution of unviable socially owned enterprises," Aurora Ferrari, senior private sector development specialist and task team leader, said in the statement. The Policy Based Guarantee is issued by the International Bank for Reconstruction and Development (IBRD). The guarantee will cover the principal amount of a commercial bank borrowing of up to EUR 300mn, not exceeding the equivalent of USD 400mn, with a 6-year bullet maturity on a non-accelerable basis, the statement read.

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