Development Fund obtained credit worth €40m from Erste Bank

The representatives of the Development Fund of Republic of Serbia and Austrian "Erste bank" have signed the contract on credit line worth €40m intended for Serbian exporters.

Minister of Economy in the Government of Republic of Serbia, Predrag Bubalo, said that the method had been found for turning old claims of "Novosadska banka" towards company "Novkabel" into good business transaction with the help of "Erste bank", the new owner of "Novosadska banka".

Bubalo pointed out that, in the framework of the credit line approved by "Erste bank" to the Development Fund of Republic of Serbia, €6m would be set aside for settling of old debts of "Novkabel", whereas the rest, €34m, would be given to the entrepreneurs in form of short-term loans with favorable terms.

The loans will be approved to the exporters for working capital. The repayment period will be six months, interest rate will be 6% on annual basis and reopening of loan will be possible.

Vladimir Medan, Erste banka (Photo: ekapija.com)