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The Government of the Republic of Serbia

In the service of citizens

Competition for incentive funds worth RSD 1.7 billion on July 13

Belgrade, 11 July 2007

Serbian State Secretary at the Ministry of Economy and Regional Development Verica Kalanovic said that a public competition will be announced on July 13 for incentive funds worth RSD 1.7 billion for the development of small and medium-sized enterprises (SMEs), regional development and the development of small and medium-sized enterprises in the hospitality industry.

Verica Kalanovic

Kalanovic told a press conference that a sum of RSD 1.3 billion will be allocated for the programme for developing SMEs in 58 undeveloped municipalities of Serbia, RSD 200 million to support projects for turning innovations into finished products, and an equal amount for the development of SMEs in the hospitality industry.

She specified that these incentive funds will be distributed through the Serbian Development Fund, and be used by the end of the year.

According to Kalanovic, all investors who invest in the development of SMEs in undeveloped municipalities are eligible to compete for the incentive funds worth RSD 1.3 billion, regardless of where their business is established.

The payment period for these loans is up to seven years, with a grace period of one year, at an annual interest rate of 1% to 2%, depending on whether the funds are being invested in the 35 most undeveloped municipalities or in the other 23 undeveloped municipalities, said Kalanovic.

She said that those who are ready to invest their own funds in the development of enterprises will have advantage in competing for the loans, and the aim in encouraging development of businesses in undeveloped municipalities is to open new SMEs, increasing employment and living standards, as well as improving the investment climate.

Goran Petkovic

She explained that those competing for the RSD 200 million funds for supporting projects to turn innovations into finished products should be innovators from Serbia who will offer new products on the market.

Kalanovic pointed out the fact that the aim of this programme is to provide encouragement to an inventive approach in business, use of domestic resources, offer alternatives to imported items and encourage exports, as well as opening of SMEs with new programmes.

Serbian State Secretary at the Ministry of Economy and Regional Development Goran Petkovic said that the most important criterion for approving loans for development of SMEs in the hospitality industry will be alignment of activities with the Strategy for Tourism Development which should encourage the development of tourism in specific locations, as well as the economic viability of projects and an assessment of their influence on regional development.