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The Government of the Republic of Serbia

In the service of citizens

Self-employment loans as of March

Belgrade, 23 February 2005

Serbian Minister of Finance Mladjan Dinkic said today that a special credit line for providing funds to the unemployed for starting their own business will be opened in March and micro credits worth from €5,000 to €20,000 will be approved.

Mladjan Dinkic at today's press conference

Dinkic told a press conference held at the Serbian government that €7.5 million has been set aside in the state budget for this purpose. The Development Fund will approve loans and a public competition for obtaining loans will be announced in March. All those registered at the Employment Bureau will be eligible.

He said that the loan has very favourable terms, with a repayment period from three to five years, a one-year grace period and a one percent annual interest rate.

The Minister of Finance said that the use of these loans will be monitored and that three months after the loan is approved, the unemployed person will have to prove to the Development Fund that they have registered as employed.

Dinkic recalled that two major problems in Serbia are unemployment and a high foreign trade deficit. According to current data of the Serbian Statistics Office there are approximately 500,000 jobless people, although the data of the National Employment Service suggest that the number stands at 830,000.

Dinkic confirmed that the law on the Agency for Export Insurance and Financing has been completed and added that this Agency will have the starting capital of €30 million. Its co-founders are the Serbian government which will invest around €25 million and Jubmes Bank which will participate with the remaining €5 million, and at whose offices will be the seat of the new Agency for Export Insurance and Financing.

Dinkic voiced hope that this law will pass through the Serbian parliament by late March and that the Agency will start working by summer.

The Minister explained that the Agency will provide insurance from non-commercial and commercial risks for export transactions and investment of domestic legal entities in foreign countries. In addition, it will finance export transactions of domestic legal entities and entrepreneurs, both of individual legal entities and consortiums.