Small and medium enterprises to get EUR 150 million – A loan agreement signed with the European Investment Bank

(Photo: I.Vukša)

The agreement was also signed at the Government of Serbia by the governor of the National Bank of Serbia Jorgovanka Tabakovic.

This is an Apex loan for small and medium enterprises and other priorities, and the agreement is the second line of credit in the value of EUR 150 million within the package worth EUR 500 million granted by the EIB to Serbia in July 2013.

The assets will be distributed through business banks under very favorable conditions and will enable the making of loans to small and medium enterprises and enterprises with medium market capitalization, as well as the financing of priority projects carried out by end users of any size in the areas of knowledge, energy, environmental protection, healthcare and education.

- Serbia is halfway through realizing the IMF-supported program, we've made a lot of progress, and now we have to develop the SMEs and support the economic growth, which was 3.5% in the first quarter – said Vujovic.

He added that guarantee systems had to be developed and that public assets were meant for the development of the economy.

The maturity date for the loan is 12 years, including the initial four years, for the projects carried out by small and medium enterprises and 15 years, including the initial five years, for priority projects carried out by end users of all sizes, with the possibility of choosing the fixed and the variable interest rate at loan drawdown.

The new feature of this line of credit is the initiative called “Jobs for the Western Balkans Youth”, through which the EIB wishes to give additional support to small and medium enterprises and enterprises with medium market capitalization in Serbia which promote the employment of the young.

A part of this line of credit of the maximum amount of EUR 75 million will be set aside for projects which meet the eligibility criteria of the Initiative.