UK Export Finance (UKEF) has approved a loan of EUR 430 million (GBP 365 million) for the construction of a 5G highway in Serbia, as confirmed yesterday at the London Global Investment Summit.
– The project of the construction of the Morava Corridor (E-761) is thereby becoming the first project in Serbia which will use the support of the world’s oldest exporting credit agency, and the total amount that UKEF set aside for the crediting of local projects is around GBP 4 billion – the UK Embassy in Belgrade announced.
The Morava Corridor is planned to connect Pojate and Preljina and be one of the most modern traffic routes in the region, since the project of the consortium Bechtel-ENKA entails the most modern telecommunications equipment, signalization and flood control technology, that is, environmental protection systems.
UKEF differs from other national crediting agencies for its flexibility: there’s an obligation of only up to 20% of the loan being spent on British supply chains – whether goods or services – and the repayment terms are competitive with those of other OECD crediting agencies, the announcement says.
UKEF can also secure guarantees for the financing in Serbian dinars, and private and public companies alike may apply for the UKEF support.
– I am delighted that the UKEF support for the Morava Corridor project has been confirmed today. This announcement confirms that we are working on strengthening the relations of the UK and Serbia, which are future-oriented. The United Kingdom has enormous experience and expertise not just in road construction, but also in sectors such as rail innovations and green energy. These sectors are crucial for the development of Serbia and the wider region of the Western Balkans – said Sian MacLeod, UK Ambassador to Serbia.
Let us remind that the loan is provided by JP Morgan Chase Bank
to the Corridors of Serbia for a period of 13 years, with an annual interest rate of 0.5%, increased by a six-month EURIBOR, with a UKEF guarantee.