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USAID AND MINISTRY OF AGRICULTURE MAKE EASY ACCESS TO LOANS FOR SMALL AND MEDIUM-SIZED AGRICULTURAL ENTERPRISES

24. January 2020.

The United States Agency for International Development (USAID) and the Ministry of Agriculture, Forestry and Water Management have launched a loan guarantee program in collaboration with ProCredit Bank, Addiko Bank and Intesa Bank to encourage banks to offer loans totaling 90 million US dollars to food producers and individual farms over a 12- year period. 

“We know that Serbian entrepreneurs, businesses and innovative firms in the agribusiness sector want to invest in their businesses and strengthen or expand their commercial activities. Our goal now is to help release the funding they need, so that they could do it, "said Mike de la Rosa, Director of the USAID Mission to Serbia. This new partnership with the Ministry of Agriculture and banks will complement the USAID's ongoing efforts to strengthen the competitiveness of the Serbian food industry. "

"The aim of the credit guarantee is to support business development and generate new investments in the agricultural sector, with a focus on primary agricultural production and food processing," said Branislav Nedimovic, Minister of Agriculture, Forestry and Water Management. This program will provide Serbian businesses with easier access to financing, which is necessary for growth, innovation and job creation.

Part of the loan portfolio is intended to support startups operating for less than 3 years, businesses owned by women and legal entities in underdeveloped regions of Serbia. Benefits for loan beneficiaries are a longer maturity and more favorable loan terms.

Source: USAID and Coordination Body