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The Government of the Republic of Serbia

In the service of citizens

Italy approves €33.2 mln for development of Serbia's private sector

Belgrade, 23 June 2005

Serbian Minister of Finance Mladjan Dinkic said today upon the signing of an agreement for beginning the realisation of a loan from the Italian government amounting to €33.2 million for development of Serbia's private sector that Italy is the major importer of Serbia's products.

Speaking at a press conference held after the signing ceremony, Dinkic said that Serbia exported goods worth €150 million to Italy in the first four months of the year, which means that Italy and Bosnia-Herzegovina are Serbia's top two importers.

According to Dinkic, this year's export in the first four months is €60 million larger than in the same period last year, which is the best proof of the positive effect of last year's symposium of Italian businessmen dubbed "Italy in Belgrade 2004".

The financial agreement between representatives of the Republic of Serbia and the Italian government's agent Artigiancassa SpA became effective on June 16, fulfilling conditions for the beginning of realisation of the €33.2 million loan.

The loan's funds will be forwarded to intermediary banks: Delta Bank, Eksim Bank and Komercijalna Bank through the National Bank of Serbia, for the purpose of financing small and medium sized enterprises.

The Minister of Finance explained that the amount of individual loans for small and medium sized enterprises will range from €50,000 to €1 million, with a 4.9 percent annual inflation rate, a repayment period of up to eight years and a grace period of up to two years.

Dinkic explained that loan beneficiaries are required to use at least 70 percent of each individual loan for purchasing equipment, spare parts, technology and industrial licences from Italy, whereas the remaining funds can be used to cover expenses domestically, such as working assets and goods needed for the project's realisation.

Italian Ambassador to Serbia-Montenegro Antonio Zanardi Landi pointed out that this loan is just another mark of attention from the Italian government to the Serbian government and the Republic of Serbia in general.

Antonio Zanardi Landi

Landi said that Italian aid to Serbia has now changed from being humanitarian in nature, adding that it will now focus on the two countries’ cooperation in the fields of the economy and industry.

He recalled that two weeks ago, when Serbian Prime Minister Vojislav Kostunica visited Italy and talked with Italian Foreign Minister Gianfranco Fini, it was announced that the Italian government was considering possibilities of approving a new credit line worth €30 million for financing Serbian businessmen interested in buying machines and mechanical facilities made in Italy.

Ambassador Landi also said that a new symposium called “Italy in Belgrade 2005” will be held from October 9 to 11, and will gather between 1,500 and 2,000 businessmen from Italy and Serbia.

Governor of the National Bank of Serbia (NBS) Radovan Jelasic said at the conference that with this Italian loan, the total amount of funds available to small and medium-sized enterprises in Serbia has reached €150 million.