The World Bank has approved a $300 million 30-year loan to help Serbia recover from floods in May that killed 57 people and devastated its energy sector, the lender said in a statement on Saturday. The heaviest rainfall in living memory caused rivers to burst their banks and sweep away roads, bridges and homes, causing damage estimated at 1.5 billion euros ($1.88 billion).
The cost means the Serbian economy is expected to contract in 2014, further complicating government efforts to rein in a budget deficit seen at more than 8 percent of national output.
The loan, which was approved on Friday and has a grace period of 18 years, will help meet domestic energy demand, protect farmers and assets in areas affected by flooding, and improve the Balkan country's capacity to respond to disasters.