March 30 (SeeNews) - Serbia's government plans to provide 700 million euro ($774 million) in aid to micro, small and medium-sized enterprises (MSMEs) to limit the adverse economic consequences of the coronavirus outbreak, president Aleksandar Vucic said.
The government will pay the minimum monthly salary to every employee of a micro, small and medium-sized enterprise in Serbia for a period of three months, Vucic said in a video file posted on the website of private broadcaster TV Prva on Sunday.
"Moreover, a financing model is being agreed with the banks in Serbia under which they will offer 2 billion euro in soft loans through a corporate liquidity guarantee fund to the market and the state will participate with between 480 million euro and 600 million euro," Vucic said.
The annual interest rate will stand at 3.57% for dinar-denominated loans and the state will guarantee them for a period of three years, he noted.
"Our Development Fund will also invest up to 200 million euro in loans to companies under the best conditions, the interest on the euro loans should not exceed 1%, with a grace period of nine to 12 months," Vucic stated.
Medium-sized and large companies will be able to issue corporate bonds which the state will buy, he added.
Last week, Vucic said Serbia will provide up to 4.5 billion euro in support for the business.
Serbia has so far confirmed 741 coronavirus cases and three deaths related to the disease in the country. Health minister Zlatibor Loncar announced on March 6 the first case of the coronavirus infection.
($ = 0.904535 euro)