Q:
A:
Serbia needs more guaranteeing organisations
Belgrade,
11 September 2006
State Secretary at the Serbian Ministry of International Economic Relations Vlatko Sekulovic said today that Serbia needs a bigger number of guaranteeing organisations which would give guarantees to small and medium-sized enterprises (SMEs) for obtaining loans.
At a roundtable discussion on guarantees for the development of SMEs, arranged by the Italian region of Abruzzo, Sekulovic said that Serbia needs an entire network of such institutions, considering the fact that the Serbian Guarantee Fund has not seen the kind of revival which was expected.
He explained that these institutions would be financed by municipalities, districts and the Serbian government, and that Italian experience will be very valuable in that respect.
The experience of the Italians could help in forming such institutions, and in the training of a suitable work force, because in Serbia the SMEs face difficulties in obtaining loans, which makes it impossible for them to develop faster.
Representative of the Italian company Finest Franco Del Neri said that it is necessary to change regulations to allow the formation of different kinds of guarantee funds, adding that in Italy such funds are also founded by companies.
He pointed to the fact that during a one year period SMEs in Serbia showed exceptional interest in loans offered by the Italian government worth €33 million, and 33 projects were approved whose total value is €13 million.
The average value of a project is €400,000, which is higher than the ordinary average, said Del Neri, and added that this shows the SMEs are conducting business at a higher level, which is encouraging.
He recalled that the condition is that funds obtained through a loan, which is provided for eight years with a grace period of two years at an interest rate of 4.9%, are spent so that 70% of the sum is used for equipment and the rest can also be used as working capital.
By the end of 2004 many enterprises seemed to be on the edge of bankruptcy, said Del Neri, adding that now that assessment has proved wrong, the enterprises in question are very successful companies, and the introduction of the VAT and fiscal cash registers has contributed to these results.
He explained that these institutions would be financed by municipalities, districts and the Serbian government, and that Italian experience will be very valuable in that respect.
The experience of the Italians could help in forming such institutions, and in the training of a suitable work force, because in Serbia the SMEs face difficulties in obtaining loans, which makes it impossible for them to develop faster.
Representative of the Italian company Finest Franco Del Neri said that it is necessary to change regulations to allow the formation of different kinds of guarantee funds, adding that in Italy such funds are also founded by companies.
He pointed to the fact that during a one year period SMEs in Serbia showed exceptional interest in loans offered by the Italian government worth €33 million, and 33 projects were approved whose total value is €13 million.
The average value of a project is €400,000, which is higher than the ordinary average, said Del Neri, and added that this shows the SMEs are conducting business at a higher level, which is encouraging.
He recalled that the condition is that funds obtained through a loan, which is provided for eight years with a grace period of two years at an interest rate of 4.9%, are spent so that 70% of the sum is used for equipment and the rest can also be used as working capital.
By the end of 2004 many enterprises seemed to be on the edge of bankruptcy, said Del Neri, adding that now that assessment has proved wrong, the enterprises in question are very successful companies, and the introduction of the VAT and fiscal cash registers has contributed to these results.
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