RSD 550 million for procurement of equipment – State to continue financing SME sector in cooperation with banks in 2017

Small and medium enterprises (SME) will be provided with RSD 550 million in grants for financing the procurement of production equipment in 2017, stated Katarina Obradovic Jovanovic, Head of SME Policy at the Ministry of Economy.

As she explained, this program has been realized by the state in cooperation with banks for a number of years.

– Of the total amount of the investments, a company can receive 25% of grants from the state fund, companies participate with 5%, and the rest is financed by a bank loan, which means that the value of the procured equipment will be at least four times larger than the 550 million provided by the state – Obradovic Jovanovic explained.

Aside from the funds for the procurement of equipment, Obradovic Jovanovic announced the continuation of the program with the European Investment Bank. The drawdown, worth EUR 150 million, will be realized through commercial banks.

– These loans are very interesting to medium and large enterprises because of their very attractive interest rates, and the conditions for enterprises which employ the young and are involved in internship and education programs will be even more favorable this year.

As our interviewee told us, RSD 150 million has also been set aside for startups in 2017. The program will be realized in cooperation with the Development Fund.

– Startups will stand to receive 30% in grants for their programs, whereas 70% will be provided as a loan by the Development Fund.