Loans for entrepreneurs in Nišava region - 4m EUR thanks to Government of Denmark and NLB Bank

NLB Bank in Serbia and the National Bank of Serbia (NBS) signed the contract on January 22nd, 2010, on use of 4m EUR worth of funds from the Balkan Local Economic Development Programme for SME in the Nišava region.

The President of the Executive Board of NLB Banka in Serbia, Zoran Đurović, said at the press conference that the Government of Denmark had donated 2m EUR for the approval of loans, while the rest had been provided by NLB Bank.

He said that the funds would contribute to the development of the region and creation of new jobs. He added that both short-term and long-term loans would be granted to SME.

- The amount of short-term loans will range between 3,000 and 30,000 EUR, while the repayment period will be up to 12 months. Long-term investment loans of 10,000 to 50,000 EUR will be granted on the period of one to five years, with the grace period of one year - said he.

He reminded that the signing of the contract had been preceded by the signing of the financial agreement between the Government of Denmark, the Government of Serbia and NBS, thanks to which Denmark had provided the donation for that credit line.

The Governor of NBS, Radovan Jelašić, said that the loans would be granted in RSD only, while the interest rate would depend on the referential interest rate, plus 3 to 4% on annual basis.

He said that NBS would monitor realization of loans.