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The Government of the Republic of Serbia

In the service of citizens

Cooperation with Germany on promoting SMEs

Belgrade, 4 July 2018

Prime Minister Ana Brnabic and German Ambassador to Serbia Axel Dittmann attended today the signing of the Memorandum of Understanding on the implementation of the Serbian-German programme for the promotion of entrepreneurship and self-employment, which will contribute to the strengthening of small and medium-sized enterprises (SMEs).

The Memorandum, signed by Director of the Public Investment Management Office Marko Blagojevic and Director of the German Development Bank (KfW) Office in Serbia Arne Gooss, is one of the first steps towards the creation of a Serbian-German programme for stimulating entrepreneurship and self-employment.

On this occasion, Brnabic assessed that this document will help remove two obstacles to starting a business and these are lack of funds and risk of failure.

According to Brnabic, this programme will provide favourable and affordable sources of financing to be placed through commercial banks that will partner with the German Development Bank and the state, while on the other hand, it will provide almost complete and risk-free sources of funding, because the state will fully assume the risk through lending and creating guarantee schemes.

She pointed out that the programme is intended for craftsmen, service activities and farmers and that it will be implemented by the Ministry of Economy in cooperation with the Public Investment Management Office.

I hope this will serve as a good incentive for the government to take care of entrepreneurs, of small and medium-sized enterprises, the Prime Minister said, urging commercial banks to join the project.

Dittmann said that this programme is being developed in close cooperation between Serbia and Germany and added that at the beginning, €12.9 million will be available.

The goal is to start 1,500 companies in Serbia at the beginning, but that will not be all because Germany wants to contribute to the strengthening of small and medium-sized enterprises, to the improvement of the economy and the reduction of unemployment, Dittmann said, adding that banks will get a guarantee framework to give loans to companies, whereby these companies will be assisted through trainings.

This programme which is part of the Serbian-German initiative for sustainable growth and employment under the title "Entrepreneurship and Self-Employment Programme" is supposed to provide support to founders of enterprises, as well as to micro, small and medium-sized enterprises.