Discussions between bankers and the National Bank of Serbia (NBS) regarding the youth loan program have hit an impasse over one key issue—the required participation rate for applicants. While the state has agreed to subsidize interest rates, the bankers are divided on the amount of upfront participation required from young people, according to unofficial reports from Nova Ekonomija.
In most global markets, a 20% down payment is standard, but Serbian officials have proposed a much lower rate, with Finance Minister Siniša Mali confirming that the government has negotiated a 1% participation requirement. For example, a young person purchasing an apartment worth 100,000 euros would only need to provide a down payment of 1,000 euros, with a 3.5% interest rate on the loan.
Despite the favorable conditions, youth activists have expressed dissatisfaction with the loan scheme, focusing instead on their demand for justice regarding a deadly incident at the Novi Sad Railway Station, where 15 people died in a canopy collapse. Students are calling for a transparent investigation and accountability from the authorities, which has taken precedence over the loan offer.
The Serbian government is facing budget constraints, with funds already allocated to public works for EXPO 2027 and infrastructure projects like the metro construction. As the state struggles to meet demands across various sectors—including education and agriculture—how it will manage the costs of subsidizing loans for young people remains uncertain.
