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Loans to economy, citizens to be approved in two weeks
Belgrade,
5 February 2009
Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic stated that the government today adopted the decree on measures to overcome the economic crisis, through which loans worth RSD 122 billion will be granted for the economy and for purchasing domestic products.
Mladjan Dinkic
At a press conference following the session Dinkic announced that next week the government will sign first contracts with banks regarding loans for mitigating the impact of the economic crisis, adding that loans to the economy and citizens will be granted two weeks from now.
He said that six out of 35 banks in Serbia do not fulfil the government’s conditions for inclusion in the programme of measures to encourage the economy and stimulate the sale of domestic products, but did not specify which.
He said the list of banks participating in the programme will be revised every three months.
Minister Dinkic explained that according to these measures, RSD 2 billion will be set aside from the budget for subsidising RSD 40 billion in loans for maintaining the liquidity of companies, adding that at least half of this amount is intended for exporters.
The interest rate on subsidised loans for liquidity and permanent working assets for companies will be 5.5% a year at the most and will be paid off over the period of one year, he explained.
The decree referring to these loans specifies that the maximum amount of the loan for an entrepreneurial shop is €20.000, for a small enterprise employing up to 50 workers €50.000, while for medium-sized companies with up to 250 workers the top limit is €500.000, specified Dinkic, adding that the limit for large companies is €2 million.
He said the government also adopted the decree on the terms of use of co-financed loans for investments with the guarantees of the Guarantee Fund, which prescribe that the annual interest rate on these loans stands at around 6%, that is, euribor plus 4%.
The Minister specified that the deadline for paying off the loan is 3–5 years, with a grace period of 12 months, adding that the Development Fund will secure 30% of the loan, while business banks will provide the remaining 70%.
He pointed out that the state will guarantee 75% of bank placement and the overall loan will be approximately RSD 17 billion, adding that entrepreneurs will be able to obtain €30,000 , small-sized enterprises €200,000, medium-sized enterprises € 1.5 million, while large ones will be allowed to take a €4 million loan.
The decree on the conditions and criteria for the distribution of loans for subsidising interest rates of consumer loans envisages that RSD 20 billion will be provided for the purchase of domestic products, said Dinkic.
He specified that a car loan interest rate will be 4.5% a year, and the deadline for paying it off will be 5–7 years, adding that the interest rate for other goods will be 6% and the pay-off deadline 5 years at the most.
The Minister said that the government today adopted an aid package for Jat Airways, worth €10 million, €5 million of which is intended for investment and another €5 million for social programme.
Dinkic explained that Jat Airways must pay off its loan by December 31, 2009, adding that the government will enable the company to acquire four new planes, which will be used for regional traffic.
He said that six out of 35 banks in Serbia do not fulfil the government’s conditions for inclusion in the programme of measures to encourage the economy and stimulate the sale of domestic products, but did not specify which.
He said the list of banks participating in the programme will be revised every three months.
Minister Dinkic explained that according to these measures, RSD 2 billion will be set aside from the budget for subsidising RSD 40 billion in loans for maintaining the liquidity of companies, adding that at least half of this amount is intended for exporters.
The interest rate on subsidised loans for liquidity and permanent working assets for companies will be 5.5% a year at the most and will be paid off over the period of one year, he explained.
The decree referring to these loans specifies that the maximum amount of the loan for an entrepreneurial shop is €20.000, for a small enterprise employing up to 50 workers €50.000, while for medium-sized companies with up to 250 workers the top limit is €500.000, specified Dinkic, adding that the limit for large companies is €2 million.
He said the government also adopted the decree on the terms of use of co-financed loans for investments with the guarantees of the Guarantee Fund, which prescribe that the annual interest rate on these loans stands at around 6%, that is, euribor plus 4%.
The Minister specified that the deadline for paying off the loan is 3–5 years, with a grace period of 12 months, adding that the Development Fund will secure 30% of the loan, while business banks will provide the remaining 70%.
He pointed out that the state will guarantee 75% of bank placement and the overall loan will be approximately RSD 17 billion, adding that entrepreneurs will be able to obtain €30,000 , small-sized enterprises €200,000, medium-sized enterprises € 1.5 million, while large ones will be allowed to take a €4 million loan.
The decree on the conditions and criteria for the distribution of loans for subsidising interest rates of consumer loans envisages that RSD 20 billion will be provided for the purchase of domestic products, said Dinkic.
He specified that a car loan interest rate will be 4.5% a year, and the deadline for paying it off will be 5–7 years, adding that the interest rate for other goods will be 6% and the pay-off deadline 5 years at the most.
The Minister said that the government today adopted an aid package for Jat Airways, worth €10 million, €5 million of which is intended for investment and another €5 million for social programme.
Dinkic explained that Jat Airways must pay off its loan by December 31, 2009, adding that the government will enable the company to acquire four new planes, which will be used for regional traffic.
Milutin Mrkonjic
He said that the government also agreed to level motorway tolls for foreign and domestic vehicles by decreasing the toll for foreign vehicles.
Minister of Infrastructure Milutin Mrkonjic said that that the government today adopted an action plan for the construction of road and railway Corridor 10, which envisages a €475 million investment in this respect.
He pointed out that international financial institutions will set aside €340 million, while the remaining amount of money will be provided from domestic sources.
He said that the government is planning to complete the motorway section Presevo-Levosoja by this May and to start the construction of two motorway section from Horgos to Pozega, for which it has already provided funds from domestic sources.
Minister of Infrastructure Milutin Mrkonjic said that that the government today adopted an action plan for the construction of road and railway Corridor 10, which envisages a €475 million investment in this respect.
He pointed out that international financial institutions will set aside €340 million, while the remaining amount of money will be provided from domestic sources.
He said that the government is planning to complete the motorway section Presevo-Levosoja by this May and to start the construction of two motorway section from Horgos to Pozega, for which it has already provided funds from domestic sources.
Verica Kalanovic
The Minister stressed that more than 40 km of motorways will be constructed in Serbia this year, including the Belgrade ring road.
Mrkonjic added that the government has also provided funds for the construction of the railway station Prokop and voiced his hope that a tender in this respect will be announced in August or September at the latest.
Minister for the National Investment Plan Verica Kalanovic said that RSD 20.5 billion will be earmarked from the 2009 budget for the National Investment Plan, RSD 6 billion will be set aside for the completion of Corridor 10.
She added that RSD 2.9 billion will be set aside for the construction of motorway sections in Vojvodina, RSD 1 billion for the Belgrade ring road and RSD 2.2 billion for the works in Southern Serbia.
Mrkonjic added that the government has also provided funds for the construction of the railway station Prokop and voiced his hope that a tender in this respect will be announced in August or September at the latest.
Minister for the National Investment Plan Verica Kalanovic said that RSD 20.5 billion will be earmarked from the 2009 budget for the National Investment Plan, RSD 6 billion will be set aside for the completion of Corridor 10.
She added that RSD 2.9 billion will be set aside for the construction of motorway sections in Vojvodina, RSD 1 billion for the Belgrade ring road and RSD 2.2 billion for the works in Southern Serbia.
