Committee on Finance Approves “Covid Credit” of EUR 200 Million – Support to SMEs

The Committee on Finance of the National Assembly of Serbia has approved a state borrowing of EUR 200 million to support small and medium enterprises whose businesses have been affected by Covid-19.

Serbia will take out this loan from the European Investment Bank.

This credit is meant to provide funds that the state currently doesn’t have and that are meant to support the economy whose operations have been jeopardized by the epidemic circumstances. The loan is to be distributed through the Development Fund.

The Development Fund will thereby be able to meet the demands of the economy for financial support to mitigate the consequences of the epidemic, which started being made last year.

A part of the loan proceeds will be directed at companies with a medium market capitalization, in order to enable them to accelerate their economic activities and growth.

The Committee on Finance also accepted the report on the operations of the Fiscal Council for 2020, but this body of the Government of Serbia was warned to strictly adhere to the procedures.