EPS, a state-owned electric utility power company in Serbia, has received the welcome news that it will receive a €200 million loan from the European Bank for Reconstruction and Development (EBRD).The loan is to help the company as they continue to recover from the Balkan floods in 2014, which caused horrendous damage. EPS, whose head office is in Belgrade, will use the loan to help improve the company’s efficiency, improve their corporate governance as well as to help them to achieve their long-term aims including commercialisation.

This loan comes as a part of the planned reform of Serbia’s energy sector and will help to liberate the market which is a key condition when gaining access to the European Union. The loan and how it will be used will be overseen by the Serbian government as well as the International Monetary Fund (IMF) and the World Bank.

Nandita Parshad, the EBRD director for ‘power and energy’ has said “We believe our financing will make EPS more efficient. We are pleased to be working on the modernisation of the company, increasing environmental and social standards and corporate governance. We see a lot of potential to further develop EPS as a commercial company and it is important EPS continues to implement the reforms started over the past year or two”.