KfW Development Bank’s Loan Worth EUR 100 Million for Financing Agriculture, Energy Efficiency, Renewable Energy and Municipal Infrastructure

18. July 2016.

The KfW German Development Bank extended to the Republic of Serbia a EUR 100 million loan for financing agriculture, energy efficiency, renewable energy and municipal infrastructure.

Purpose of the loan:

Agriculture – the financing of primary agricultural production and food industry (purchase of agricultural land, facilities, machinery and the equipment, cattle-breeding, investment into organic agriculture and fruit-growing, investment into current assets in the amount of maximum 10% of the total loan amount)

Energy efficiency and renewable energy – the financing of reconstruction, renovation or fitting out of SMEs and households in Serbia that will help reduce unit energy consumption and CO2 emissions by at least 20%

Municipal infrastructure – the financing of construction and reconstruction of water pipelines and sewerage systems, purchase of vehicles and machines for providing utility and public transport services, reconstruction of streets, rehabilitation of electricity grid, public lighting and urban heating systems, as well as construction and refurbishment of social infrastructure, such as schools, kindergartens, healthcare institutions and the like).

Terms of lending:

Agriculture: No restrictions

Individual loan amount:

Energy efficiency and renewable energy – up to EUR 1,000,000

Municipal infrastructure – up to EUR 1,200,000

Individual project value can’t exceed EUR 2,500,000

Maturity: Up to 7 (seven) years

Grace period: Up to 2 (two) years

Interest rate: Up to the level of interest rate charged by intermediary bank on loans of the same purpose but granted from other sources

The KfW loan funds are available to SMEs, municipalities, agricultural estates and natural persons through the following intermediary banks:

HALKBANK(www.halkbank.rs) EUR 5 million for energy efficiency and renewable energy

KOMERCIJALNA BANKA (www.kombank.com) EUR 30 million for agriculture and EUR 25 million for municipal infrastructure

PROCREDIT BANK (www.procreditbank.rs) EUR 40 million for agriculture

For more information on the credit line, please contact the above intermediary banks or the NBS’ International Relations Department – the Revolving Credit Fund Management Unit (telephone numbers: +381/11 333-8324, 333-8325, 333-8326).

Source: National Bank of Serbia and Coordination Body