The European Bank for Reconstruction and Development (EBRD) has authorised a sovereign-guaranteed loan of up to €42m ($48.6m) to Serbia’s state-owned passenger rail operator, Srbijavoz, to finance the purchase of 12 new railway sleeping cars for international routes.

Ljubiša Pejičić, acting director general of Srbijavoz, signed the loan agreement.

The guarantee agreement received signatures from Siniša Mali, first Deputy Prime Minister and Minister of Finance, and Jelena Čeperković, EBRD Deputy Head for Serbia.

Currently, Srbijavoz operates over 20 passenger routes serving urban, national,and international travellers.

The new equipment will replace existing rolling stock that no longer meets European Union (EU) requirements and is not permitted to operate in EU member states.

Srbijavoz plans to deploy the new sleeping cars on the current Belgrade-Bar route linking Serbia and Montenegro.

The company has outlined further intentions to use the updated fleet on future routes connecting Serbia with neighbouring EU countries, in line with EU standards for cross-border rail services.

The EBRD stated it remains the principal institutional investor in Serbia by capital committed, with total investments surpassing €10bn through 394 projects.

In July 2024, Serbia launched construction of a €153.6m ($166.2m) railway bypass around the city of Niš, as part of its broader modernisation and reconstruction efforts on the Niš–Dimitrovgrad railway line.

The project involves building a single-track, electrified bypass from Niš–Ranžirna station to Sićevo station, as well as electrifying the Crveni Krst section that connects to the new bypass.

In January 2024, construction began on the first joint rail border crossing between North Macedonia and Serbia, funded by a €5m EBRD loan and a €2.5m EU grant.

Located on Corridor X of the Trans-European Transport Network, the project aims to enhance Western Balkans connectivity.