Banks Aid the Recovery of Serbian Economy with 2 Billion Euros

Category: News 16 April 2020

The banking sector of Serbia is fully supporting Serbian economy in overcoming the difficulties caused by the Covid-19 pandemic. In accordance with the Decree on the establishment of the Guarantee Scheme, adopted by the Government of the republic of Serbia, the banks will secure the funds to finance liquidity and working assets of Serbian enterprises, in the total amount of EUR 2 billion.

“The banks share the fate of the citizens and the economy of this country, and they fully support the activities of the National Bank of Serbia and the Government of the RS to lessen the effects of the crisis, and to overcome it as soon as possible. Our shared goal is primarily to preserve the liquidity of business entities, to overcome the crisis as quickly as possible, and to end up with a hight growth rate in the following year, which we expect to reach the estimated 7.1%”, said Mr Vladimir Vasić, Secretary General of the Association of Serbian Banks.

Loans covered by the Guarantee Scheme shall be granted to small and medium enterprises, entrepreneurs, and registered agricultural holdings. The loans will be granted to a maturity period of 36 months, including a grace period of 9-12 months.

Clients can be granted a loan to the amount of a quarter of their annual income for 2019, with a maximum limit of EUR 3 million. The loans may be indexed in dinars or euros, with favourable interest rates amounting to 1m BELIBOR +2.5% for loans indexed in dinars, and 3m BELIBOR + 3.0% for those indexed in euros.

The banking sector of Serbia has previously implemented a moratorium in the payment of obligations, thus supporting the citizens and the economy of Serbia with about EUR 2 billion. Through the significant engagement of their employees, the banks have continued providing other services throughout the crisis, as well, enabling undisturbed money flow, pension payments and everything else the clients need.

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