A total of EUR 320 m for favorable dinar loans – Governmental subsidies went on liquidity and raw materials procurement

(Photo: Ivana Vuksa)

A total of EUR 320 m has left for favorable, subsidized dinar loans. Majority of them went on raw materials procurement and liquidity while a smaller number was used for refunding.

- Mainly, the funds were used for raw materials procurement but there is but a few of them hiring new staff. These loans are a kind of the governmental suppot to keep the existing workers – bankers say.

Although employment is not a condition, situation companies sface dictated the loan purpose. Delays in liabilities to the state, the staff and suppliers are the most common problems so EUR 400 m went on liquidity and the same amount on procurement of production material. Only a small number of companies used it for refunding previous loans.

One of the rare people who, thanks to a loan of RSD 10 m, hired seven new workers is Nenad Blagojevic, owner of Leskovac-based Bland.

- We invested funds in procurement of raw materials. Thanks to this investment, we will increase production and export to Norway. I am planning to take another loan of RSD 5 m for the same thing – to procure raw materials – Blagojevic outlines.

So far, Raiffeisen bank approved 915 loans. As they say for Blic, most of it was used in production companies, processing, pharmacy and trade for the procurement of raw materials at domestic market. The prerequisite to get a loan is credit worthiness of the company and the amount depends on company size. Regulation governs the price of 5,45%, but good companies, as Blic finds out, can count on even more favorable interest rates of 5%.

These are the crediting terms: Tenor of subsidized dinar loans is 18 months with a six-month grace period. Maximal interest rate totals 5,45% twice lower than in the market. Loan purpose: liquidity, raw materials purchase and refunding.