World Bank to lend €82.6mn to Serbia to support greener economic growth

The World Bank said it will provide a €82.6mn loan to Serbia under the Public Sector Efficiency and Green Recovery Development Policy Loan to support the country’s reforms aiming to speed up economic growth that is greener, more resilient and inclusive. The loan has been approved by the World Bank’s board of directors.

“This budget support operation is an important part of the World Bank Group’s engagement in Serbia and is closely linked to the pathways toward reducing poverty and boosting shared prosperity, with a strong focus on environmental sustainability and climate action,” Stephen Ndegwa, World Bank country manager for Serbia, said in the statement.

The funds will back Serbia’s efforts to improve public sector efficiencies and initiate a green recovery. The Agence Francaise de Développement, (AFD) is supporting the green recovery aspects of the initiative through its own additional financing.

Improved efficiency of the public sector should be achieved via more transparent and efficient public procurement, improved mechanisms for public sector hiring, more efficient management of social protection programmes, better control of state aid and a more predictable legal framework for international transactions.

Meanwhile, Serbia will also focus on reducing air pollution and creating a legal framework for climate policy, actions which are expected to benefit people from all segments of the population.