Serbia borrows 1.9 billion euros from French banks for Rafale jets

BELGRADE: The Serbian Parliament on Monday voted to allow the state to borrow 1.9 billion euros ($2.2 billion) from several French banks to finance the purchase of 12 Rafale fighter jets.

Belgrade last August agreed to buy twelve Rafale aircraft - nine single-seat and three two-seat models - for 2.7 billion euros to replace its ageing fleet of Russian MiGs.

According to the legislation approved on Monday, 823.5 million euros has already been paid as an advance and Serbia will borrow the remaining amount “from a group of French banks and credit institutions.”

The adopted law names Bred Banque Populaire (163.3 million euros), Credit Agricole (345.87 million euros), Credit Industriel et Commercial (345.87 million euros), Credit Lyonnais (163.3 million euros), Societe Generale (422.73 million euros), and Natixis (480.37 million series).