Government adopts new stimulus package

As part of the new economic stimulus measures that will come into force on May 8, the government has guaranteed an additional figure of RSD 40bn in cheap loans. The loans (amounting to some EUR 420mn) are to ensure company solvency, Economy and Regional Development Minister Mladjan Dinkic announced today. Government adopts new stimulus package Speaking to reporters following a meeting of the cabinet, Dinkic said that this would swell the overall package of favorable loans for industry to EUR 1.9bn. The government measures include almost halving interest rates for solvency loans with foreign currency clauses, which will total three percent per annum, the minister stated. He added that the government planned to introduce dinar loans with an annual 10.5 percent interest rate, which is 3.5 percent down on the reference rate set by the National Bank of Serbia. The minister said that the government had doubled loans for exporters, as well as offered attractive consumer loans for the purchase of building materials. He said that Serbia was “gradually making its way out of the difficult economic situation.” According to Dinkic, production and export figures had hit their lowest point in February, but all the indicators were pointing to “the beginning of the end of the crisis.“ He stressed that the duration of Serbia's escape from the crisis would depend primarily on foreign factors—namely, those that had caused the crisis in the first place. Prime Minister Mirko Cvetkovic said earlier of the new package that “it is an improvement on the existing package of measures, geared towards further support for industry through cheaper loans”. The latest package of measures will be presented to the Social-Economic Council today. Dinkic and Labor Minister Rasim Ljajic will be presenting the new measures at the council meeting to unions and employers. Ljajic told B92 that the measures were a continuation of those already presented, which, he said, had already yielded results and stopped further drops in production. “We expect that this first package of measures, which has already yielded results, since we’ve already had a fall in industrial production in March from 19 to 14 percent, which is the first sign that the measures are working, will help prevent a fall in production and redundancies,” he explained. The cabinet (FoNet, archive)

Government adopts new stimulus package

Speaking to reporters following a meeting of the cabinet, Dinkić said that this would swell the overall package of favorable loans for industry to EUR 1.9bn.

The government measures include almost halving interest rates for solvency loans with foreign currency clauses, which will total three percent per annum, the minister stated.

He added that the government planned to introduce dinar loans with an annual 10.5 percent interest rate, which is 3.5 percent down on the reference rate set by the National Bank of Serbia.

The minister said that the government had doubled loans for exporters, as well as offered attractive consumer loans for the purchase of building materials.

He said that Serbia was “gradually making its way out of the difficult economic situation.”

According to Dinkić, production and export figures had hit their lowest point in February, but all the indicators were pointing to “the beginning of the end of the crisis.“

He stressed that the duration of Serbia's escape from the crisis would depend primarily on foreign factors—namely, those that had caused the crisis in the first place.

Prime Minister Mirko Cvetković said earlier of the new package that “it is an improvement on the existing package of measures, geared towards further support for industry through cheaper loans”.

The latest package of measures will be presented to the Social-Economic Council today.

Dinkić and Labor Minister Rasim Ljajić will be presenting the new measures at the council meeting to unions and employers.

Ljajić told B92 that the measures were a continuation of those already presented, which, he said, had already yielded results and stopped further drops in production.

“We expect that this first package of measures, which has already yielded results, since we’ve already had a fall in industrial production in March from 19 to 14 percent, which is the first sign that the measures are working, will help prevent a fall in production and redundancies,” he explained.