Serbia agrees $400mn guarantee scheme with US’ DFC for bank loans to businesses

By bne IntelliNews April 28, 2021

Serbia’s finance ministry said on April 28 it agreed a new guarantee scheme with the US Development Finance Corporation (DFC), which foresees the DFC to provide $400mn as guarantees for Serbian banks to approve loans to local companies.

The guarantee scheme arrangement is part of the Washington agreement signed by Serbia President Aleksandar Vucic and former US president Donald Trump in September 2020.

Finance Minister Sinisa Mali said in the statement that the official signing of the agreement on the new guarantee scheme, as well as the completion of the DFC agreement with the banks in Serbia, is expected soon.

“We managed to conclude a final agreement with the DFC on the first $400mn for the Serbian economy. Last week, two new guarantee schemes of additional €1bn were adopted in addition to the existing guarantee schemes, which Serbia will use in cooperation with the banks to mitigate the negative consequences of the pandemic,” Mali said in the statement.

Following the signing, the money will be available as loans to local companies for liquidity, innovation and investment.

Serbia is the first country in the region, and among the first in the world, to conclude such an agreement with DFC.

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