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The Government of the Republic of Serbia

In the service of citizens

New credit line for business start-ups

Belgrade, 28 March 2008

Serbian Minister of Economy and Regional Development Mladjan Dinkic stated today that a new credit line for business start-ups has been announced in the press and added that the total amount available is RSD 2.2 billion, and the application deadline is May 15, 2008.

Following a tour of the entrepreneurial store Snezan in Borca, Dinkic told the press that everyone who thinks they can start their own business is eligible for these funds and may apply to the Serbian Development Fund in Belgrade or its regional development offices.

The Minister recalled that these are very favourable loans for starting a business and they do not require a mortgage, adding that they are primarily intended for the young.

He said the annual interest rate is only 1% and that the loans are granted for a period of between 3–5 years, with a one year grace period.

Dinkic also noted that a competition for allocating mortgage-free loans to start-up businesses in Kosovo-Metohija was announced yesterday.

As for Kosovo-Metohija, loans will also be allocated to current owners of craft shops and small and medium-sized enterprises under favourable conditions. The deadline for repaying the loan is up to seven years and loans below €15,000 do not require a mortgage, whereas for those exceeding this amount a mortgage will be necessary only for half of the loan. The other half will require a token handshake, explained Dinkic.

He recalled that 1,500 loans were approved in 2007 which helped to employ 6,000 workers.

The Minister said that according to data from the Agency for Small and Medium-Sized Enterprises, the largest number of loans were approved for food, beverage and tobacco production, as well as for the production of machinery, metals and metallic products, chemical and fibre products, electrical and optical appliances, textile and textile items and for the wood processing industry.