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Vukčević: IRF provides loans up to EUR 3 million for liquidity of economy

Published on: Mar 25, 2020 • 10:59 PM Author: PR Service
Within the overall emergency measures of the Government of Montenegro, the Investment and Development Fund (IRF) has decided on a new line of credit intended to support liquidity of businesses, with the aim of mitigating the effects of the coronavirus pandemic, Chairman of the IRF Board of Directors Zoran Vukčević said at a press conference today.

The loan amount can be up to EUR 3 million, the grace period is up to 2 years, and the interest rate on EIB funds is 1.5 percent, while interest on funds from other sources will be 2 percent.

"The credit procedures will be simplified, and in order to protect against any misuse, the IRF assumes the responsibility to make an individual decision for each individual request. The loan amount can be up to 3 million, but that does not mean that everyone who applies must receive that amount. The IRF estimates the amount in terms of the complexity of the situation in which the business is and in accordance with the stated needs. Grace period is up to 2 years, and the exact period will be individually determined depending on the real opportunity of the company. The interest rate is 1.5 percent. These are funds from the EIB, and if they come from other sources the interest rate will be 2 percent," said Vukčević, adding that the loan is implemented free of charge, that the documentation is delivered electronically or by post, starting tomorrow, and that the Fund's employees will be available by phone and e-mail.

"This line of credit will be used solely for the purpose of addressing the insolvency problem arising from the effects caused by the coronavirus pandemic. The funds can be used to procure products, semi-finished products, raw materials and pay salaries," said Vukčević.

He emphasized that in the current situation the life and health of our citizens is above all: "Therefore, the priority is the procurement of medicines, medical equipment, ambulances. We must have the funds for these purposes! Then for the production, processing and procurement of food and hygiene supplies. Considering the uncertainty of the duration of the pandemic, we must take care of supplying the citizens with essential products."

The loans are also intended for entrepreneurs, micro and small businesses that are directly at risk. These are caterers, artisans, taxi drivers, small boutiques, hairdressers, private nursery schools, small shops and other entrepreneurs who had to close their facilities.

"They will be provided with a liquidity loan, intended primarily for the payment of salaries to employees, for the next three months, based on the last paid net earnings. This loan will be paid through banks to the current account of employees. In this way, we will include as many small entrepreneurs and their employees as possible, given the limited financial resources at the moment," Vukčević said.

He said that in these difficult circumstances, medium and large enterprises will be supported, as projects and investments that are crucial to maintain basic economic activity must be taken into account, saying that it is necessary to preserve all the healthy enterprises that in the previous period showed a responsible attitude towards business and the state, primarily through tax payment.

For full press release in Montenegrin please click here.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO


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