Excellent response of the Serbian economy for favorable loans guaranteed by the state

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Today, the Minister of Finance, Sinisa Mali, pointed out that the banks received a request for around one billion euros in loans, within the guarantee scheme by which the state provides liquidity and working capital assistance to entrepreneurs, micro, small and medium enterprises, due to the coronavirus pandemic.
He assessed that the response of the economy was excellent, and that the economic measures envisaged by the state fully responded to the crisis caused by the coronavirus.
“According to the cut-off on June 15, 2020, 6,332 loans were approved, with a total value of 526 million euros, including contracted loans, of which there are 4,996, worth 365 million euros. At the same time, they are working on approving requests for another 3,449 loans with a total value of 453 million euros.
“These figures show that we have hit the crux of the problem, and on the other hand, such a measure is a guarantee of the stability of our economy and a way to further strengthen the economy and secure jobs,” said Mali.
Mali reminded that the guarantee scheme for loans is part of the state’s measures, which set aside a total of 5.1 billion euros to help the economy and citizens.
This type of assistance, envisaged by the Decree on establishing a guarantee scheme as a measure of support to the economy for mitigating the consequences of the COVID-19 pandemic caused by the SARS-CoV-2 virus, enables a state guarantee for loans worth up to two billion euros.
The Minister mentioned that another billion euros are available to the economy within the guarantee scheme, and invited companies and businessmen to apply.
“According to the requests, it can be seen that entrepreneurs, small and micro legal entities face the most challenges, who needed the help for liquidity and working capital the most. Our goal was to ensure their business. I invite those who are still thinking about this type of help to apply and take the opportunity, because this is a good way to secure a business.
“These loans are extremely favorable, it is about cheap money that is already in circulation,” he said.
The repayment period is 36 months, and the grace period from nine to 12 months, while the state guarantees up to 80 percent of the amount owed.
Mali reminded that the Program of Economic Measures is the result of difficult reforms that Serbia has been implementing since 2014, when the country was on the verge of bankruptcy.
“We recognized that, especially in these difficult times, the most important thing is that we, as a serious and stable country, which is the champion in Europe in terms of growth rate in the first quarter, should help our economy.”
By strengthening the private sector, we are also strengthening the finances of the state, creating better conditions for business, but also the lives of our citizens, creating a favorable ground for increasing salaries and pensions.
“We want to look ahead, to a better tomorrow, and we can only do that when we are stable in all fields, when our economy is working even better,” he pointed out.
He also reminded of the “Serbia 2025” program, which envisages the continuation of the construction of infrastructure, from roads to the construction of a water supply and sewerage network, and a water purification factory.
“Our goal is to fulfill the given promises, and they imply a better standard of living. Everything we are doing is aimed at improving the conditions for both the economy and the citizens, and the inviolable goal is to achieve the promise in five years – that the average salary will be 900 euros, and the average pension around 430 – 440 euros,” the minister noted.
Mali concluded that Serbia is focused on success and pointed out that economic measures have preserved economic stability, and that we rightly expect to achieve even greater growth and to maintain the leading position in Europe, Danas reports.