Yesterday, Serbian Minister of Finance, Mali, announced the government’s readiness to activate the Development Fund and start assisting companies-victims of the COVID-19 crisis. Those having interest in that are invited to send their requests for help, while the government experts are preparing a legal framework for crediting (mostly) micro, small and medium entreprises. The total value of the state-backed package is two billion euros and the first amounts will be assigned to companies’ accounts in April. A similar program has been created for peasants, as well.
Each of those working in the above-mentioned companies, as well as peasants, will get an amount equaling three minimum wages (three times 30,000 dinars i.e. thrice 257 euros) that will be paid in May, June and July. Workers in big companies, who were not dismissed but mostly temporarily suspended, will get only the half of that sum. In order to receive the money, companies will have to open separate bank accounts. Those who apply for assistance, while acting contrary to the government’s recommendation and dismissing more than 10% of their work force, will be severely fined (up to 5,000 euros). Those who get a credit will be obliged to respect the same 10% rule.
The loans will be repaid in 36 installments, with a grace period of 12 months. The maximum amounts vary between 10 million dinars (85,000 euros) for craftsmen and micro companies and 40 million dinars (340,000 euros) for medium ones.
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