Good and Bad Policies of the Development Fund

The Director of Development Fund, Ms. Slađana Backović, announced an extension of repayment periods for loans granted by this institution from 6 to 10 years, followed by reduction of interest rates from 4.5% down to 3%. BSN considers this a positive development for Serbian businesses, however, it is disappointing that there is still no development policy which would direct the spending of its funds.

BSN states that by making the repayment conditions more lax, the Development Fund has finally listened to the demands for cheaper crediting that the business sector has been making since 2009 and the beginning of economic crisis in Serbia. This will positively influence the competitiveness of the beneficiaries of the Development Fund’s programs.

However, we are still confused by the lack of strategy for choosing which sectors and branches of industry to support. A more focused approach in supporting the industries which prove to be Serbia’s competitive advantage would contribute more to the general economy of the country and to the Fund’s financial results.