In order to help the economy, the government has prepared a credit line of 200 million euros. So far, two have been approved. In addition to the so-called Covid loans, there are also regular programs to support the economy. How are they used and how much do they help businessmen?
As soon as about 30 requests for non-refundable funds worth around 1.5 million euros were approved through the Development Fund, a coronavirus happened to us.
The Ministry of Economy assures that the development program and the program for beginners in business have not been suspended and that the Commission will meet in the coming days.
Small and medium enterprises can now apply for funds for the purchase of new equipment. The program was supposed to start in March, and the funds were halved from the planned 16.6 million euros.
“Due to the new situation in the world in general, it is not realistic to spend 16.6 million euros in the country’s economy as a non-refundable participation in the loan package. That is why we have reduced that amount to 8.3 million euros,” said Dragan Stevanovic, state secretary at the Ministry of Economy.
The participation for the purchase of equipment is only five percent, 25 percent is provided by the state, non-refundable, and the rest is a favorable loan from commercial banks or leasing companies.
“This is the seventh program in which we participate. So far, we have placed 18 million euros last year alone. In general, our participation in these programs ranges from 20 to 30 percent as banks, and I believe that we will reach that percentage this year as well,” points out Ivan Smiljkovic, a member of the Board of Procredit Bank.
The director of “Delikos”, Mina Rakicevic, says that it was a significant investment for that company.
“It has led to an increase in our productivity, to a reduction in the costs of packaging in the product itself, and on the other hand to get an attractive product that can compete,” adds Rakicevic.
The new equipment brought Sumadija barbecue sauce to Amazon, where the products of only three Serbian companies can be found.
“I will mention that we export 35 percent of our products, so the funds were very useful and the equipment we bought was absolutely necessary for us to raise the level of competitiveness, quality and adapt our product to the demanding market,” said Ilija Vujovic, director of Min Commerce.
The Ministry of Economy says that, not only that no investor announced the withdrawal from the Serbian market, but that new ones are appearing.
“What is very important is that with the budget rebalance, the absolute financing of our obligations in accordance with subsidies has not changed at all. We are ready to fulfill all our obligations in accordance with the investors’ requests by the end of this year,” Stevanovic points out.
Businessmen can apply for more programs from the package of assistance in eliminating the consequences of coronavirus, as well as regular ones, if they meet the conditions.
The only limitation is that the amount cannot exceed 191 thousand euros per company per year, RTS reports.
