Minister of Finance Diana Dragutinovic stated that the proposed amendments to the Law on the tax procedure and tax administration envisage harsher penalties for financial disobedience and harmonisation with the Law on offences.

Speaking at the Parliament, Dragutinovic elaborated on bills affirming the agreement between the Serbian and Russian governments on granting Serbia a state loan and the agreement on a loan for the implementation of a financial protocol signed on 15 December 2009 between the Serbian and French governments.

Serbian MPs will also debate whether to affirm a financial agreement between Serbia and the European Investment Bank (EIB) and three more agreements on avoiding double taxation in income and property tax between Serbia and Austria, Serbia and Azerbaijan and Serbia and Pakistan.

Speaking about the agreement between the Serbian and Russian governments on granting Serbia a state loan, Dragutinovic recalled that the loan totals $200 million and will be repaid over a period of 12 years with a two-year grace period, that is, in 40 instalments.

Within seven days after the law affirming this agreement is enforced, Russia will transfer the funds to the account of the Ministry of Finance to finance Serbia’s budget deficit.

The Minister also noted that the loan agreement with France implies a loan of €11.1 million intended for the establishment of an integrated geo-data system.

The repayment period for this loan is 40 years with a 20-year grace period and an annual interest rate of 0.2%, the Minister specified.

The EIB loan will be the first of its kind in Serbia, she said, adding that the repayment period is 20 years, with a five-year grace period and the possibility of choosing a fixed or variable interest rate.

Other international agreements on the agenda have been proposed to the Parliament because they will enable the avoidance of double taxation for people living in one country and earning their income in another, Dragutinovic concluded.

Minister of Education Zarko Obradovic explained that the loans are very important for education because around €50 million will be earmarked from the loans to this sector.

He explained that these funds will be used to establish a single information system in Serbia, implement the National Education Strategy, renovate school facilities and procure equipment for schools. Government