Serbia has agreed on a loan of 1.92 billion euros with several French banks and financial institutions for the payment of 12 Rafale aircraft and related products and services.
This is stated in the draft Law on the Ratification of the Credit Arrangement, on the website of the Serbian National Assembly. Otherwise, according to the Law on Public Debt, the Serbian National Assembly must ratify the state’s borrowing.
Through the Ministry of Defense, the government concluded a purchase agreement with the company Dassault Aviation on August 29th, 2024. The contract refers to the procurement of 12 Rafale aircraft and related products and services.
Commercial contract worth 2.74 billion euros
The total procurement price of the equipment to be delivered and the services to be performed by the seller under the commercial contract amounts to 2.745.000.000 euros.
The payment was agreed so that 30 percent of the agreed price is paid in advance (823.500.000 euros), which Serbia has already paid from its own funds.
The first part was paid in the amount of 15 percent of the total agreed price (411.750.000 euros). The second part of the advance payment was in the same amount, as seen in the document published on the website of the Serbian National Assembly.
Furthermore, the first and second performance-based payments are planned. These payments amount to 25 percent each of the total agreed price (i.e. 686.250.000 euros each). These will be paid using funds from the credit arrangement.
The remainder in the amount of 20 percent of the total agreed price (549.000.000 euros) will also be paid using funds from the credit arrangement, as stated in the draft Law.
“The parties concluded this Agreement in order to record the provisions and conditions under which the lenders agreed to, in accordance with the provisions and conditions of this agreement, make available to the Borrower (Serbia) a credit arrangement in the maximum total amount of 1.921.500.000 euros. The funds will be applied to finance part of the total contract price which does not exceed 70 percent of the total contract price,“ it is stated.
The credit arrangement will, it is stated, be made available through direct payments to the seller for goods and services that will be delivered and performed in accordance with the commercial contract.
