EIB chief for Western Balkans: Belgrade-Nis high-speed railway part of EU plans

That is the EIB's contribution within the framework of European Union assistance during the pandemic to the private sector, small and medium-sized enterprises.

The funds are already available, intended to maintain liquidity, preserve jobs and businesses' expenditures.

"We expect that to help the recovery. The financing should be under very favourable conditions, long-term loans," Alessandro Bragonzi, head of the EIB regional office, said.

He adds that borrowing from foreign governments instead of international financial institutions is becoming more frequent, but that the country must have a sustainable strategy for borrowing and a solid debt management framework.

The EIB offers some of the most favourable conditions on the market, Bragonzi said.

"We take care of the sustainability of these loans, and that the financial stability of the debtors is not in question. The key advantage of these loans and those from the EU is that we take care of environmental and social standards, we try to respect them in the entire process, as well as its transparency and competitive public procurement," Bragonzi said.

Commenting on the EIB's withdrawal from building an incinerator at the Belgrade Vinca landfill Bragonzi says other investors finance the project.

He added that when the possibility of co-financing was studied, it was decided to withhold from co-financing the project in line with Serbia's EU membership path and Chapter 27 on recycling.

"We are cooperating with Serbia's Government on various other projects related to environmental protection," he said.

Investing in the green transition and digital transformation and changing the transport system is key to Serbia's economic development.

For Serbia, one of the most important drivers of growth is the high level of investment in infrastructure, which will help in economic growth, which should be around 5.3 percent, but even 6.5 percent, according to the latest forecasts of the NBS.

"EIB helps carbon neutrality, our bank encourages investments in more sustainable forms of transport, and we believe that the railway is something that will initiate the transformation of the transport; we support railway projects in Serbia… "Bragonzi said.

"We are also thinking about financing the modernisation of the railway between Belgrade and (the southern city of) Nis, for high-speed trains, which is a huge project that is being studied with the EU delegation in Serbia. That project should be financed by the EU, international financial institutions like us. In our portfolio, we also have the modernisation and renovation of 300 kilometres of railways," he adds.

Asked when the realisation of these projects can be expected, Bragonzi says they are complex, need time and preparation, and the most important thing is European funding.

"We offer expertise in project development and implementation. The preparation of the project includes an analysis of the technical part and the social and environmental effects. "

He added that in September, the EIB, together with the Secretariat of the European Transport Community, which consists of EU countries and six partner countries, and the EBRD, an EIB partner in numerous projects, would organise the Summit of the Western Balkans Railways in Belgrade.