Finance and Economy Ministry negotiates EUR 500 million loan for SMEs with EIB

Serbian Finance Ministry’s State Secretary Aleksandar Ljubic told Tanjug news agency Wednesday that talks were underway with the European Investment Bank (EIB) on a new EUR 500 million loan for SMEs, thus confirming Finance and Economy Minister Mladjan Dinkic's earlier announcement.

- The funds will be available to businesses in Serbia very soon - said the state secretary.

He said the distribution of budget funds for SMEs was taking place at the planned pace through business banks, adding the ministry had not received any objections in connection with that from either domestic or foreign banks in Serbia.

On January 24 the Serbian government approved a program of subsidized liquidity loans, which are available to entrepreneurs and SMEs in 2013.

The Finance and Economy Ministry set aside RSD 600 million (around EUR 5.36 million) in this year's budget for this purpose.

Business banks are expected to approve around EUR 100 million in loans to small businesses during 2013.

The state is subsidizing five percent of the interest on the loans, denominated in euros and dinars.