Volksbank announced on Friday (September 11, 2009) that it had started granting loans in association with German development bank KfW for realization of the energy efficiency improvement projects. According to the announcement, Volksbank will approve total of 10m EUR worth of loans to small and mid-sized enterprises and population.
The Manager of Retail Sector, Petar Grujić, said that the condition for financing was that the project enabled saving of minimum 20% of energy. As he explained, the loans will be granted for reconstruction of residential and office space, as well as for procurement of equipment.
According to the announcement, the effective interest rate from that credit line amounts to minimum 7.08% on annual basis for reconstruction of residential space, 10.74% for reconstruction of office space, and 11.4% for equipment and vehicles, as well as for consumer loans for citizens.German development bank KfW signed the contract in January 2009 with five Serbian banks on credit line worth 75m EUR for financing public utility infrastructure and energy efficiency. These loans will be approved through Čačanska Banka, Raiffeisen Bank and ProCredit Leasing.