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Dec. 16 (Bloomberg) -- Germany will lend Serbia 100 million euros ($130.3 million) and add a 10 million-euro grant to help the country’s efforts to expand the use of biomass, a representative of Germany’s development bank said.
Pending a final agreement between the governments, the loan will probably have a 15 year maturity, a grace period of 3 to 5 years and 2.5 percent to 3 percent interest, said Juergen Welschof, who represents Kreditanstalt fuer Wiederaufbau in Serbia. He spoke after German ambassador Wolfram Maas signed a memorandum of understanding on the planned loan with Serbian officials in the country’s capital Belgrade today.
Serbia’a biomass potential, estimated at 2.7 million tons of oil equivalent, is “vastly underused” and the country needs to tap it to cut reliance on oil and gas imports that currently account for 45 percent of all energy consumed, Environment Minister Oliver Dulic said.
--Editors: Zoe Schneeweiss, Andrew Langley
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