During her visit to Belgrade, European Commissioner for Single Market, Industry, Entrepreneurship and SMEs Elzbieta Bienkowska met with Serbian Prime Minister Aleksandar Vucic and attended the ceremony where the European Investment Fund and two Serbian banks (Unicredit and Banca Intesa) signed a guarantee agreement that will allow direct guarantees for banks in order to support some 6,000 SMEs in Serbia with a total of EUR200 million in favourable loans over the next three years.

Bienkowska: It is necessary to make more effort to privatise public companies

Following the meeting with the Prime Minister/President-elect Vucic, a press release from the Government states that Bienkowska said that Serbia was a pillar of stability in the region and it should keep on working to maintain peace and good neighbourly relations. She also welcomed economic reforms implemented by the Government and stressed the importance of making more effort to privatise large public companies.

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The Western Balkans region is ready for a deeper form of economic integration through the establishment of a single market, which would raise the competitiveness of the region as a whole, said Prime Minister Vucic, the statement reads.

Bienkowska and Vucic spoke about the European path of Serbia, problems in dialogue with Pristina and about support of the EU to Serbia through programmes for the support to the small and medium-sized enterprises, the Government press release reads.

EUR200 million for SMEs

The agreement, signed today at the Government of Serbia, will provide EUR200 million in credit lines for about 4,600 small and medium-sized enterprises in Serbia, in the framework of the COSME programme of the European Union.

The agreement between the European Investment Fund and two banks in Serbia – Unicredit and Banca Intesa – were signed by the EIF Executive Director Pier Luigi Gilbert and CEOs of Banca Intesa and Unicredit Bank, Draginja Djuric and Csilla Ihasz.

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The contract signed with Unicredit Bank Serbia and Banca Intesa will provide new lending of up to EUR100 million under more favourable conditions and a longer repayment period for some 2,400 small and medium-sized enterprises.

European Union Commissioner for Internal Market, Industry, Entrepreneurship and SMEs Elzbieta Bienkowska said that Serbia had a great friend in her in Brussels and added that Serbia was a very important country for the entire European Commission.

She said that the agreement forged an important link between the EU and candidate countries as the COSME envisaged setting aside EUR2.3 billion to be used by seven Eastern European countries by 2020.

“Only the EU can guarantee peace and stability and economic growth to our citizens,” the European Commissioner said.

The signature ceremony was also attended by the Minister of Economy Goran Knezevic and the President of Serbian Chamber of Commerce Marko Cadez.

As pointed out during the ceremony, the EIF will provide guarantees for the two Serbian banks allowing them to approve loans with longer repayment periods, without mortgages and with lower interest rates.

Djuric said that interest rates ranged from 2.39 to 7.85 per cent, adding that the interest rates of previous loans approved within COSME agreements that have been disbursed in the past six months ranged from 2.39 to less than 4 per cent.

Gilbert said that COSME was an important tool that enabled underwriting of up to 50 per cent for the loans offered to Serbian companies by the two banks. According to the Head of the EIF, the two banks will that way be able to manage risks better and help SMEs to overcome difficulties.

Csilla Ihasz said that the Unicredit Bank would provide EUR100 million aimed at turnovers and collaterals reduction, on the one hand, and investments in equipment and machines, on the other. She added that loan approval and disbursement would not take long – only a couple of days.

The Minister Goran Knezevic reminded that within the first phase of the COSME programme, Banca Intesa has approved EUR60 million for 1.300 companies in Serbia since December 2016.

Bienkowska: Serbia is on the right track

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During her visit to Belgrade, Commissioner Bienkowska also took part in the discussion “Industrial policy and the development of SMEs in the process of Serbia’s EU accession”, organised by Serbian Chamber of Commerce.

Speaking at the event, she said that the last year’s economic growth achieved by Serbia was a result of ambitious reforms and that Serbia improved its business environment for SMEs by streamlining the procedures. She added that both Serbia and the EU needed growth and new jobs.

Bienkowska said the EU was the biggest trading partner of Serbia, accounting for more than 50 per cent of Serbia’s total foreign trade.

“Serbia-EU trade is growing and it increased by nine per cent in 2016,” she said and added that “in the period between 2005-2015 EU investments in Serbia have reached EUR13 billion; that is 15 times higher than investments from other partner.”

Bienkowska said Serbia was on the right track and she was happy with the progress made within her purview.