The Government of Serbia has passed a decree defining the conditions for granting small value aid, which should not have a significant impact on the distortion of competition on the market or on trade between Serbia and EU member states. For the approval of this type of assistance, the state authorities do not apply, as before, to the State Aid Control Commission, but make the decision on the justification of this measure independently.
The amount of so-called de minimis aid varies depending on the way in which the beneficiary of public funds provides support to the company, and it can be obtained by companies in all sectors.
Aid may not be granted to encourage exports or to favor domestic products over imported goods, but may be granted to cover the costs of participating in trade fairs or to reimburse the costs necessary to introduce a new or existing product in a new market in another country.
De minimis aid can be granted to one company in the amount of up to 200 thousand euros in any period during three consecutive fiscal years.
A company or entrepreneur in the road freight sector can receive up to 100 thousand euros of this type of assistance in any period during three consecutive fiscal years, but this assistance must not be used to purchase vehicles.
A market participant that performs other activities in addition to road freight transport may receive de minimis aid of up to 200 thousand euros if the donor, by separating activities or costs, ensures that no amount higher than 100 thousand euros will be allocated for road transport.
De minimis assistance, in addition to direct benefits, can also be in the form of subsidies, subsidized interest rates on loans, recapitalization, risk financing measures in the form of equity, loans and guarantees.
In order to approve de minimis assistance in the form of a loan, the company must not be in bankruptcy proceedings or liquidation process, and is awarded up to the amount of one million euros, with a repayment period of five years.
For market participants in the road freight sector, that amount is twice less, ie half million euros.
In the case of loans with a repayment period of ten years, the potential maximum loan is also twice as small and amounts to half million euros.
The guarantee may not exceed 80 percent of the value of the loan for which they are issued, and amount to:
– 1.5 million euros (or 720 thousand euros for market participants engaged in road freight transport), for a warranty period of five years or
– 720 thousand euros (or 360 thousand euros for market participants who perform road transport activities), for guarantees of ten years, Nova Ekonomija reports.
