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The Government of the Republic of Serbia

In the service of citizens

Soft loans for boosting production in Kragujevac

Kragujevac, 3 June 2005

Serbian Minister of Finance Mladjan Dinkic said today that the state will set aside 500 million dinars for crediting small and medium-sized enterprises and construction of new factories in Serbia under favourable terms.

From left: Mladjan Dinkic, Velimir Ilic and Veroljub Stevanovic

Author: Tanjug

Dinkic told a press conference held at the Kragujevac City Assembly that this city will have received around 400 million dinars in loans by the end of the year. These loans will be approved for a five-year period and have a 0.5 percent inflation rate and one-year grace period.

He added that investors who plan to employ a larger number of workers and those who commit to employing 70 percent of the workforce that is registered with the employment service in Kragujevac alone will have an advantage in the allocation of loans.

The Minister added that he expects prominent domestic companies, as well as foreign firms, to show great interest in this programme. He added that a memorandum on a joint implementation of this project will be signed by representatives of the Serbian government, the Development Fund and the Kragujevac City Assembly, which will have the obligation to provide free building land and infrastructure.

An additional 20 million dinars will be donated to Kragujevac for construction of a sports hall, Dinkic said.

Serbian Minister of Capital Investment Velimir Ilic said that the city of Kragujevac and the Serbian government are entering into a joint undertaking of reconstruction of roads in the city in a project valued at 260 million dinars. Each party will secure a half of that sum.

Ilic announced that the construction of a Kragujevac-Kraljevo road will begin soon, as well as construction works on the first five kilometres of the Kragujevac-Batocin highway.

Ministers Dinkic and Ilic, together with Kragujevac Mayor Veroljub Stevanovic, today visited the locations that the city will offer to potential investors free of charge for construction of new factories.