Serbia, Credit line for the unemployed, € 5,000 - € 20,000, soon Export Insurance and Financing Agency

Goran Anđelić, assistant to Minister of Finance in the Government of Serbia, announced that the credit line for the unemployed would be opened in March 2005. The credits in question range from € 5,000 to € 20,000, which will be approved with interest rate of 1% on annual basis, payment deadline of 3-5 years and grace period of one year. Credit guarantees will be very flexible - credit user's blank notes, single notes with 2 - 3 endorsers, mortgages, or guarantee contract signed by juristic person.

Starting capital of Development Fund will amount to 600 million CSD (€ 7.5 million), but in case demand for these credits is higher, the Government will provide additional finances.

Decisive criteria for approval of credit will be the number of persons that potential user of credit intends to employ. User is obliged to register activity he or she will deal with within two months. When user delivers evidence on this, the Development Fund will transfer all money to user's account within two months. During the lasting of payment period, the credit user is obliged to do the business in field he or she obtained credit for.