The outbreak of the Coronavirus and the introduction of the state of emergency for its suppression impacted the private sector of our country the most. In order to mitigate crisis, the Government of the Republic of Serbia adopted a package of measures related to the direct aid to businessmen and employees. One of these measures is the adoption of the Program of Financial Support for companies directly under impact of the economic situation caused by the Covid-19 pandemic. The program includes financial support or support of liquidity for companies in conditions of aggravated operations. The basic goals of the Program are securing liquidity funds to companies for procuring current assets as well as maintaining current liquidity for the purpose of regular settlement of obligations towards employees, business partners and the Government. The Program is implemented by the Government of the Republic of Serbia in cooperation with the Development Fund of the Republic of Serbia, and for this purpose, funds in the amount of 24.000.000.000,00 dinars have been allocated.
The right to use the funds is given to:
Funds cannot be used for certain specific activities. These are:
Entrepreneurs, collectives, micro, small and medium companies (as classified by the Law on Accounting) are entitled to submit requests for loans as envisaged by the Program of Financial Support, provided that these subjects submit official registered financial statements for the last two years. The condition of submitting financial statements shall not refer to entrepreneurs that do not have this obligation. In order to approve the loan the financial statements must present:
Also, another condition prescribes that the applicant
– repayment period of 36 months, including 12 month grace period, total duration of loan is up to 12 months of grace period and up to 24 months of repayment,
– interest rate 1% on annual level,
– loans approved and repaid in dinars,
– minimum amount of loan for one loan user is
1.000.000,00 dinars (user + its related parties) for companies, that is
200.000,00 dinars, for entrepreneurs, collectives and registered companies,
– maximum loan amount for one user may be:
1) entrepreneurs and micro companies up to 10.000.000,00 RSD,
2) small companies up to 40.000.000,00 RSD,
3) medium companies up to 120.000.000,00 RSD
– loan repayment in monthly installments,
– interest is calculated in the grace period and is added to the main debt,
– in order for the company to qualify for the loan in the period from 15 March 2020 until the expiration of three months after the disbursement of funds, such company may not reduce the number of employees by more than 10%, not including employees that concluded a part-time employment contract with the private company prior to 15 March 2020 for the period ending in such timeframe,
– the instruments of loan repayment are:
If the loan amount is over 1.000.000,00 dinars, the basic securities are bills of exchange of loan users and personal bills of exchange of founders.
In case you have any questions or doubts related to the terms of loans, please contact us in the comments below.