Russia has offered Serbia a five-year, $800-million loan for the modernization of its transportation infrastructure.



The agreement was signed in Moscow by Russian Finance Minister Anton Siluanov and his Serbian counterpart, Mladan Dinkic.



Russian news agencies report that the interest rate for the loan will be 4.1 percent annually.



Siluanov said after the signing that Serbia will receive the money this year.



Dinkic called the deal "extremely favorable" for Serbia and said the money will be used primarily to develop and rehabilitate Serbia's railways.



Based on reporting by Interfax and ITAR-TASS