BELGRADE, October 20 (RIA Novosti) - Russia will not sign a deal on providing a 1 billion euro ($1.5 bln) loan to Serbia during President Dmitry Medvedev's current visit to Belgrade, a source in the Russian delegation said.

The loan would be used by Serbia cover its budget deficit.

"There were no plans to sign an agreement on providing credit to Serbia during the Russian president's visit to Belgrade," the source told RIA Novosti.

Medvedev arrived in Belgrade earlier in the day to discuss energy cooperation including the South Stream gas pipeline with his Serbian counterpart, Boris Tadic.

He will also hold a meeting with representatives of the Holy Synod of the Serbian Orthodox Church.

Medvedev's trip to Serbia coincides with celebrations marking the 65th anniversary of the liberation of Belgrade from Nazi forces, and is the first visit to the country by a Russian head of state since Vladimir Putin's trip in 2001.