By: Milen Vesovic
Belgrade,16. Nov, 2009 (Serbia Today) - According to the NBC, the complicated procedure of approval of funds from the European Investment Bank (EIB) has finally reached the end the EIB will soon credit small and medium enterprises in Serbia with EUR 250 million, said the National Bank of Serbia (NBS).
The agreement between EIB lending and NBS was ratified in the Serbian parliament on August 31st and put into force on October 8th.
The NBS and EBI sent drafts of each contract between entrepreneurs and commercial banks in Serbia. EIB agreements were inserted into the text of the contracts for obtained on November 3rd, which are conditions for signing the contract between the NBS and commercial banks.
When this is done, ask a loan from EIB funds, explained the "Flash of the Week" Sladjana Prijic-Sladic from the NBS.
An issue created by the long process for the EIB loan approval was the many waiting for a loan, were forced to take commercial loans, at a higher rate, while waiting for their loan approval.
Kikinda Baninija, a producer of candy and other confections, plans to hire 150 more workers, was forced to find bridge loans while waiting.
“Because of the slow procedures of the arrival of money from the EIB we were forced to take commercial loans for which he was lost around one million euros,” said Rade Stanic, director of Baninija
Terms and conditions for loans from the EIB are more than favorable. The interest rates will not exceed five percent, a grace period of several years for the some loans, the repayment period is 12 years, and the minimum amount of the loans is EUR 20,000. Commercial banks in Serbia that will manage the loans from from the EIB funds are UniCredit Bank, Erste Bank, OTP Bank, Cacak’s Bank, Commercial Bank, Commercial bank Belgrade, Raiffeisen Bank and EFG Euro Bank.