Deputy Prime Minister Zorana Mihajlovic signed today, May 16, 2017, the Agreement on loan with the Chinese Exim Bank for the reconstruction and modernization of the first section of the high speed railway line Belgrade – Budapest. The signing was attended by Serbian Prime Minister Aleksandar Vucic and Chinese Premier Li Keqiang. After the signing, Serbian delegation had a meeting with the President of the People’s Republic of China Xi Jinping.

The preferential loan involves modernization of the double track railway section from Belgrade to Stara Pazova  and it amounts to USD 297.6 million. It is 20-year loan and with grace period of 5 years. This the first railway line in Serbia where the trains will be able to operate with the speed up to 200 km/h. Reconstruction and modernization of the railway line will begin this year.

“High speed railway line from Belgrade to Budapest is the most important project for Serbia from the Chinese project “One Belt One Road”, because it is located in the main route from Greek Harbor Piraeus to central Europe. This section is also very significant for Serbia because it will be the main and the fastest export direction for our economy towards EU countries. This line will connect Belgrade and Vienna and other European cities. After it is completed, people will travel from Belgrade to Novi Sad within a half an hour, and to Subotica it will take less than one hour. “, said Mihajlovic after the signing.

The railway line Belgrade – Budapest will be constructed according to European standards and it will be a part of European railway lines. The fact that only two financial agreements were signed during the whole forum and that one of them is signed with Serbia is highlighting the significance of this Agreement.