Representatives of the Citibank of the United States and Telekom Serbia singed an agreement in Belgrade on Wednesday on a loan amounting to 700 million euros ( some 941 million U.S. dollars).

"The arrival of one of the major world banks within a consortium of internationally recognized banks to this country opens up huge possibilities for new projects and creates a chance for the domestic economy to secure, through successful business management, stable financial sources," said Drasko Petrovic, general director of Telekom Serbia, following the signing of the agreement.

The loan is used for the purchase of 65 percent shares of Telekom Republika Srpska of Bosnia-Herzegovina. Telekom Serbia, except in Serbia, has also covered the market of Republic Srpska of Bosnia-Herzegovina, and Montenegro.

Petrovic said that the "purchase of the Telekom Serbia shares and investments in Montenegro, are enabling Telekom Serbia to begin to create a large telecommunications network in the region and its regional activities will boost the company's competitiveness on the market."