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Guarantee Scheme for Development Projects Launched

Ljubljana, 24 August (STA) - The SID export and development bank published on Monday the first call for applications as part of the scheme of state guarantees for loans for investments into development projects. The available guarantee quota stands at EUR 50m, while the overall amount of state guarantees will stand at EUR 1bn.

The scheme was introduced with a special law which was passed in parliament in May and which aims at boosting liquidity and helping companies squeezed by the credit crunch to fund development projects. The state will assume 75% of the loan risk.

Companies have until 31 December to file their applications, which will be reviewed by a special government commission. If the EUR 50m quota is spent before the deadline, the Finance Ministry will publish a new call for applications.

When it presented the scheme in April, the ministry said that state-guaranteed loans will be used for funding projects for boosting added value per employee and the number of jobs.

Banks will also be motivated to give loans because these loans could be used as collateral for liabilities towards the European Central Bank, according to the ministry.

Individual loans will range from EUR 500,000 to EUR 20m with the maturity of one to ten years.

Investments such as construction of real estate for sale or rent, construction of transport infrastructure, purchase of vehicles, funding of consultancy contracts or studies and reprograming of loans will be excluded from the scheme.

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