EUR 200 million in favorable loans for liquidity and working capital of business entities

The Government of the Republic of Serbia at today's meeting, on the proposal of the Ministry of Economy, adopted the Program of financial support to business entities for maintaining liquidity and working capital in difficult economic conditions caused by the COVID-19 pandemic.

The main goals of the Program are to provide support to business entities in the conditions of difficult business caused by the pandemic of the COVID-19 virus to provide support to business entities for the acquisition of working capital as well as to maintain current liquidity in order to regularly settle obligations to business partners, employees and to the state.

The Program will be implemented from Monday, April 13, 2020. through the Fund for the Development of the Republic of Serbia until the funds from the Program are used up, and no later than December 10, 2020.

24,000,000,000 dinars have been set aside for the implementation of the Program.

The Ministry of Economy invites business entities to make maximum use of this type of credit support and once again appeals for a policy of solidarity in order to overcome this period of reduced economic activity as easily as possible. caused by the COVID-19 pandemic.

WHO CAN USE THE FUNDS

Entrepreneurs, cooperatives, micro, small and medium-sized economic companies that are majority privately or cooperatively owned and that carry out production, service, trade and agricultural activities.

The funds under this Program are not can be used for:

• organization of games of chance, lotteries and similar activities;
• trade in oil and oil derivatives;
• production and trade of any product or activity, which according to domestic regulations or international conventions and agreements are considered prohibited.

The loan can be approved even if the official financial reports of the business entity for one of the last two years have shown a net loss but realized business profit.

CREDIT TERMS

• repayment term of up to 36 months which includes a grace period of up to twelve months, the total duration of the loan is up to 12 months of grace and up to 24 months of repayment;
• interest rate is 1% annually;
• loans are approved and returned in dinars;
• minimum loan amount for one user loans with related parties for companies is 1,000,000.00 dinars and for entrepreneurs, cooperatives and business entities registered in the relevant register 200,000.00 dinars;
• the maximum loan amount for one beneficiary of loans with related parties can be:
• for entrepreneurs and micro legal entities up to RSD 10,000,000.00,
• for small legal entities up to RSD 40,000,000.00 and
• for medium-sized legal entities up to RSD 120,000,000.00;
• loan repayment will be made in monthly annuities;
• in the grace period, interest is calculated and attributed to the principal debt;
• the basic condition for realizing these loans is maintaining the number of employees, in accordance with by the report of the Central Register of Mandatory Social Insurance to the number of employees for a fixed and indefinite period on March 16, 2020, with the fact that both up to the date of submission of the request and during the use of the loan, a deviation of up to 10% from the specified number of employees is accepted.
• instruments for ensuring the orderly repayment of the loan are:
• bill of exchange and promissory note authorization of the guarantor/debtor (if there is a guarantee/accession to the debt of another business entity) and/or
• mortgage on real estate whose market value is 1:1 in relation to the amount of the approved loan and/or
• pledge on equipment/movables whose market value is 1:1 in relation to the amount of the approved loan and/or
• promissory note and bill of exchange authorization of the debtor's founder/shareholder; security.

SECURITY MEANS

Depending on the amount of the loan, loan beneficiaries submit the following means of security:

- up to the amount of 1,000,000.00 dinars, the means of security are promissory notes of the loan beneficiary and personal promissory notes of the founder (all founders),

- up to the amount of 2,000,000.00 dinars, means of security are promissory notes of the credit beneficiary, personal promissory notes of the founder (all founders) and the guarantee of a natural person who is employed for an indefinite period,

- up to the amount of 10,000,000.00 dinars, the means of security are the promissory notes of the credit beneficiary, personal promissory notes of the founder (all founders) and the guarantee of a related legal entity,

- up to the amount of 25,000,000.00 dinars, means of security are promissory notes of the borrower, personal promissory notes of the founder (all founders) and a guarantee of a creditworthy business entity that is not a legal entity related to the loan beneficiary,

- for an amount above 25,000,000.00 dinars, the means of security are the borrower's promissory notes, a pledge on equipment owned by the loan beneficiary or the mortgagor and/or first-order mortgages. For clients from the Fund's portfolio who already have established real/adequate collateral, loans will be approved with higher-order collateral.