Government adopts documents for subsidizing project financing of residential development in 2011 - Construction works in Doktor Ivan Ribar housing project to start in October

Minister of Environment, Mining and Spatial Planning Oliver Dulic said that the government had rounded up the policy of helping the construction industry in crisis the day earlier.

The past few months, after two years of crisis, saw a growth in the construction sector, he said and explained that that was due to previous measures.

As Dulic said, at its yesterday's meeting, the government adopted a Decree on measures of support to the construction industry by subsidizing interest on loans to finance housing construction in 2011 and the Report on the negotiations between the Ministry of Finance and the Council of Europe Development Bank on a project of social housing in Serbia in 2011.

The Minister said that the results of government actions should soon be seen and recalled that the government had intervened in the previous two years because of the difficult situation in the construction sector during the economic crisis.

As he explained, owing to the government measures of support, 245 public buildings are being built, as well as 4,500 apartments in Stepa Stepanovic housing project.

He also announced the opening of a site in Dr Ivan Ribar housing project in October, where between 1,100 and 1,200 apartments should be built.

Thanks to the CoE Development Bank’s loan, 1,700 apartments will be built and will be sold under very favorable conditions, he said.

Dulic said that the construction sector employed between 100,000 and 120,000 people.

The Minister also announced that representatives of the government and the National Bank of Serbia (NBS) would next week discuss the new NBS measures regarding housing loans.