Partnership between Development Fund of Vojvodina and Metals Banka - 3bn RSD worth of loans for companies in Vojvodina

The Development Fund of Vojvodina and Metals Banka signed the agreement today (March 18, 2010) on strategic partnership, based on which the companies in Vojvodina will be offered the Dinar loans with annual interest rate of about 10%.

As it was announced after the signing ceremony, the credit line of 3bn RSD will be granted through Metals Banka, which will become the Development Bank of Vojvodina.

The loans will be approved in the amounts ranging between 1 and 50m RSD, while the repayment period will range between six months and one year.

Metals Banka was under forced management in the period October 2008 - November 2009 due to bad financial situation caused by the liquidity crisis, which was ended after 3.7bn RSD worth of additional capitalization in July 2009.

Vojvodina acquired majority ownership of 61.9% in Metals Banka through additional capitalization, while insurance company DDOR kept the share of 10% in the bank's capital.

The Prime Minister of Vojvodina, Bojan Pajtić, said that the agreement between Metals Banka and the Development Fund would contribute to more efficient realization of Vojvodina's authorizations, in accordance with the new Statute, and create the base for establishment of the Development Bank of Vojvodina.

Pajtić estimated that the funds that would be granted to the entrepreneurs in Vojvodina "will be definitely the cheapest in Serbia, and probably in the whole region".

Metals Banka signed the Agreement on business cooperation with the Guarantee Fund of Vojvodina today as well. In that way, the credit line of 200m RSD and the Fund's guarantee potential of 300m RSD will be provided.

According to the announcement, the loans ranging between 500,000 and 10m RSD, in EUR, will be granted to farmers for procurement of new agricultural machinery with the annual fixed interest rate of 7.5%.