DINKIĆ: Subsidized loans for liquidity in RSD

(Mlađan Dinkić)

The Minister of Economy of Serbia, Mlađan Dinkić, announced today (March 23, 2010) that the plan was that the subsidized loans with the repayment period of up to three years be approved only in RSD.

He said at the press conference that the loans for liquidity with foreign currency clause for the economy would be revoked and that the Dinar loans would be introduced.

- I think that the combination of the liquidity loans for the economy sector and consumer loans for procurement of domestic goods will help the economy come out of the crisis sooner - said Dinkić.

Dinkić said that the biggest demand for the liquidity loans since the crisis had started was registered in March when total of 165m EUR worth of loans had been approved, while the value of all approved loans from the beginning of the program was 190m EUR.

According to his words, one third of the liquidity loans are granted in RSD.

- I think that banks do not like to grant these loans in RSD because they can still have a foreign currency clause - said Dinkić.

As he explained, the approval of loans in RSD will enable strengthening of the domestic currency because banks will have to try harder to find Dinar sources or sell their foreign currencies in order to be able to grant the loans.

Dinkić said that, in that case, the economy would not depend on the exchange rate and the entrepreneurs' complaints would not be that important any more