EIB and Eurobank EFG to approve 50m EUR worth of loans to SME in Serbia

Eurobank EFG in Serbia and European Investment Bank (EIB) signed the credit arrangement worth 50m EUR on Friday (June 12, 2009).

This credit is intended for financing investment projects, capital funds and leasing procurements of small, mid-sized and micro enterprises in Serbia.

Eurobank EFG is the first bank in Serbia to be granted such loan by EIB. The Director of EIB's sector for Western Balkans, Dominic Kurben, signed the contract on behalf of that international finance institution.

The President of the Executive Board of Eurobank EFG, Filipos Karamanolis, pointed out that 40m EUR from the loan was intended for investments and capital funds, while 10m EUR would go to EFG's leasing company.

He added that the clients of that bank can apply for the loan starting from June 12, 2009, and that the bank's intention was to use all the funds from that credit line by the end of the year.

As he explained, the loan repayment terms will be a bit more favorable than the ones in the market of Serbia, and they will depend on how successful loan applicants are and on the volume of their cooperation with EFG Bank.

Minimum repayment period is two years for the loans for capital funds, while maximum repayment period ranges between five and seven years for investment loans, with the possibility of grace period.

Karamanolis pointed out that EFG Bank "is even more determined to invest in development of Serbian economy by participating in the Government of Serbia's programme for subsidized loans, as well as through Viennese Agreement that ensures maintenance of credit activities of the banks in Serbia in 2009 at the same level as in the last year".

That bank has, so far, approved total of 1 billion EUR worth of loans to Serbian economy sector.

According to the words of Karamanolis, Greek EFG group has obtained 250m EUR from EIB for loans in Greece, while the negotiations on approval of 450m EUR worth of loan for other countries are in progress.

The representative of EFG Leasing, Nenad Maksić, announced that EIB's credit line would make it possible for the clients of that company to procure equipment and vehicles for commercial purposes under much more favorable terms, and one of the innovations would be the procurement of real estates.

As he explained, the repayment period will range between two and seven years, with a grace period.

The Director of EIB's sector for Western Balkans, Dominic Kurben, said that EIB also negotiated with other banks and companies in Serbia about favorable credit lines.