Dinkic: from May 1st only RSD loans

Belgrade, April 30. 2010 (Serbia Today) - The Serbian government issued yesterday the Decree which will terminate use of the foreign currency (Euro) in calculating loans. Serbian banks are from May 1st required to give loans only calculated in dinars without using currency clause. This will apply both to business and consumer loans. "It will be much safer for the businesses, because they will avoid the risk of exchange rate and interest rates on diner loans, liquidity is only 7 per cent per year, which is significantly lower than the previous clause," Mladjan Dinkic, Minister of Economy, told reporters. According to Dinkić, in the first three months since the start of the implementation of the program of subsidized loans, government granted nearly 500 million Euros of subsidized loans to businesses and citizens. "It's almost the half the total amount from last year, when the banks approved 1.3 billion of subsidized loans," he said.