Public call for the allocation of loans within the investment program "Recovery and Development"

The investment program "Recovery and Development" (hereinafter: the Program) is implemented by the Ministry of Economy (hereinafter: the Ministry) in cooperation with the Fund for the Development of the Republic of Serbia (hereinafter: the Fund).

Funds for the implementation of the Program are provided from the credit line of the European Investment Bank (hereinafter: the EIB) in the amount of up to 90,000,000.00 euros, in accordance with the Financial Agreement for COVID-19 support to the Government of Serbia for small and medium-sized enterprises and enterprises of medium market capitalization between European Investment Bank and the Republic of Serbia, which is confirmed by the Law on Confirmation of the Financial Agreement COVID-19 support to the Government of Serbia for small and medium enterprises and enterprises of medium market capitalization between the European Investment Bank and the Republic of Serbia ("Official Gazette RS - International Agreements", number 15/21) and the Supplementary letter to the Financial Agreement number 92,618 (hereinafter: Financial Agreement), as well as from the funds of the Fund in the amount of RSD 100,000,000.00.

Loans financed from EIB funds must be in accordance with the Financial Agreement.

Business entities with less than 250 employees (full-time), as well as business entities of medium market capitalization ("MidCap"), defined as companies with a minimum of 250, have the right to apply for the use of funds under the Program employees, and less than 3,000 employees (full-time), who are privately or cooperatively owned and are registered in the Agency for Business Registers and other relevant registers.

The right to apply for the use of funds under the Program is for business entities that carry out and have registered as a predominant activity one of the activities from the List of Activities within the Investment Program "Recovery and Development".

Business entities have the right to apply for the use of funds under the Program for the following purposes:

• purchase, construction, extension, reconstruction, adaptation, rehabilitation, investment maintenance of space for carrying out activities, or storage space and accommodation capacities in tourism, except for the purchase of land;
• purchase of new or used (up to six years old) equipment for carrying out activities, including tools and delivery vehicles as well as other means of transport, except light cargo vehicle type N1;
• purchase of computer equipment;
• intangible investments (procurement of software).

Funds determined by the Program cannot be used for:

• purchase or construction of facilities and equipment for sale or rental;
• purchase of business premises intended for performing administrative tasks (office space);
• purchase of other companies, except in the case of pure purchase of facilities or equipment.

Tax costs on added value and customs duty, which are justified expenses, cannot be financed with the Program's funds, but from one's own participation.

Program funds cannot be used to reimburse costs within the framework of activities that were started or completed before the submission of a request for credit funds by a business entity in accordance with the Program.

Program loans are approved in accordance with the conditions defined by the Program. For all conditions that are not defined by the Program, the provisions of the Fund's program are applied.

Loans under the Program will be approved under the following conditions:

• maximum loan amount: 290,000,000.00 dinars;
• minimum loan amount: 1,000,000.00 dinars.

The amount of the approved loan cannot exceed 75% of justified costs from the estimated value of the investment investment.

• loan repayment term:

• 12 years within which the grace period is up to two years;
• six years within which the grace period is up to one year;

In case of early repayment of the loan, no fee is calculated.

• interest rate:

• if any the repayment period is 12 years, the interest rate is, with the application of the currency clause: 1.5% per year for all collateral;
• if the repayment period is six years, the interest rate is, with the application of the currency clause: 0.9% per year for all collateral.

• loan repayment method:

• monthly annuities.

During the grace period, the intercalary interest is calculated and paid monthly.

In the event that during the implementation of the Program, due to changes in the market, the EIB determines a higher interest rate at which the Republic of Serbia borrows so that it is higher than the interest rates determined by the Program for economic entities, the Fund will correct the interest rates determined by the Program for that difference.

How to apply and deadline for submitting the application

Precisely and correctly completed Request for a loan with accompanying documentation, in accordance with the Program, is submitted to the Fund.

The addresses of the Fund are: Bulevar Nemanjića 14a, Niš and Knez Mihailova 14, Belgrade.

Applications are accepted until the funds from the Program are used up, and no later than June 30, 2022.

On the website of the Fund: www.fondzarazvoj.gov.rs and of the Ministry: www.privreda.gov.rs you can download the necessary documentation that defines all the essential elements and rules for participation in the Program or on this link.