Program for improving liquidity of SMEs launched - EUR 100 million for loans

The Serbian government yesterday adopted the Program for subsidizing interests for liquidity loans that will be made available to entrepreneurs and small and medium-sized enterprises in 2013. The Ministry of Finance and Economy has earmarked RSD 600 million in this year's budget for interest subsidies. Business banks are expected to extend about EUR 100 million worth of loans to SMEs in 2013.

Entrepreneurs and small enterprises will be able to take out loans of up to RSD 30 million, whereas the maximum size of a loan for medium-sized enterprises is RSD 200 million.

Loans will be made in dinars and with a foreign currency clause, and the state will subsidize 5 percent of interest for these loans, the Ministry of Finance said in a release.

The loan repayment period is 18 months, with the grace period of five months. During the grace period, users are to pay the interest only, whereas the rest of the debt is to be paid in 13 monthly installments.

One-off fee for loan processing services, which will be charged by banks, cannot exceed 0.5 percent of the loan amount.