Support to domestic agriculture

Banca Intesa starts granting long-term subsidized loans for the agricultural sector

Banca Intesa will start receiving requests for granting the subsidized long-term loans for farmers that are realised in cooperation with the Ministry of Agriculture, thanks to which the farmers in Serbia will be able to get, at the most favourable conditions on the market, the basic equipment for production and invest in their production facilities. By the new model proposed by the Ministry in charge, the bank will participate in financing with 60% of the amount of the loan granted, while the Ministry will finance 40% of the funds. The loans will be granted in amounts from €5,000 to 300,000. The repayment period for these loans is 5 to 8 years, after expiry of grace period that can last from 1 to 3 years, depending on type of production for which the loan is requested. The funds of the bank are repaid in first three. i.e. 5 years of the repayment period, while the funds of the Ministry, to which the interest rate is not applied in last 2, i.e. 3 years. Long-term loans are granted in euros and paid in dinars per medium exchange rate of the National Bank of Serbia on the day of payment and are repaid in the same way.

Banca Intesa has joined the Government’s program of subsidized loans actively with intention to contribute to more successful overcoming of the economic difficulties cause by the crisis. After three months of functioning of this program, over €120 million was placed for that purpose, which is nearly 50% of totally placed funds in entire banking sector. Our main task is to help the clients find adequate solutions that will help them pass through the crisis period as easily as possible which is why we will participate actively in this program in the forthcoming period too. Considering the short-term subsidized loans for agriculture, over 200 requests were granted in two weeks, at the amount of over €500,000.

Even though it did not join the program of loans for the agricultural sector until the last year, creating Intesa Farmer credit line, Banca Intesa placed around €20 million in the agricultural sector. Considering the investment trends in the current year, it is expected that the volume of loans placed in the agricultural sector will surpass the previous year results.