€55 million for development projects in Vojvodina

Razvojna Banka Vojvodine (Vojvodina Development Bank) and the Vojvodina Development Fund signed an agreement yesterday on launching four new credit lines, of which total value is RSD 5.3 billion. Funds for these credit lines have been provided by uniting the potentials of the fund and the bank.

The agreement was signed in the presence of Vojvodina Prime Minister Dr. Bojan Pajtic who pointed out that that document confirmed the significance of formation of Razvojna Banka Vojvodine.

- We are today earmarking EUR 55 million for development projects in the Province, which should provide thousands of new jobs, as well as for export projects that will increase our balance of payments. We are also supporting programmes aimed at providing new storage capacities, which will make it possible for our farmers to operate better, more cost-efficiently and effectively and, thus, make higher profits. And what is very important is that we invest in projects that lead to the enlargement of properties, thus enabling more efficient and more rational agricultural production - said Vojvodina Prime Minister Dr. Bojan Pajtic.

He added that the interest rate on loans would range between 6.8% and 7.8%, which was much lower interest rate than the one set by commercial banks. The grace period is one year, while the loan repayment period is five years for long-term loans, that is, 12 months for short-term loans, Mr. Pajtic said, adding that such favorable terms cannot be found anywhere else in the market of Serbia.

As an extension of the Agreement on strategic partnership that was signed between the bank and the fund a year ago, the today's agreement specifies joint activities of the signers in the implementation of development programmes and projects on the territory of Vojvodina, aimed at stimulating economic development, increasing the employment rate, competitiveness and liquidity of domestic economy sector and export.