The Investment and Development Fund (IRF) plans to invest at least EUR 150 million in the next year in the economy through short-term, long-term and medium-term loans, grants and subsidies, and the conditions under which the money will be invested will be defined through individual credit lines for each year.
In the annual financial and work plan for the next year, the IRF announced caution when it comes to creating interest rates for the users of their loans due to the situation on the international market, where the fund predominantly acquires money, writes Vijesti.
Until now, interest from the small business lending program amounted to about 3.5%.
Users of IRF loans will be able to receive up to EUR 5 million with a repayment period of up to 15 years, a grace period of five years and a proportional system of calculating interest rates adapted to the needs of the economy and the sustainability of the fund. Exceptionally, the maximum loan/factoring amount will be up to ten million EUR, taking into account the fund’s exposure limit.
– Acknowledging the fact that the IRF finances the Montenegrin economy predominantly with money provided by loans from international financial institutions, in a situation where the complex situation on the international financial market, which is reflected in the continuous growth of interest rates, is evident, there is a need for additional prudence in the part of creating interest rates, to end users based on those funds – it is stated in the Annual Financial and Work Plan of the IRF for the following year.
In addition, the focus will be on additional cooperation with the relevant ministries in the area of lending for dedicated support programs, which include subsidies based on the interest rate.
– The interest rate is also an instrument for promoting priority activities and the level of investment activity. Accordingly, the simulations, that is, the reduction of interest rates will be planned in accordance with priorities and possibilities – it is written in the IRF document.
The Fund announced special lending conditions for loan users who implement projects in the municipalities of the northern region and those that are below the average level of development at the state level, and stimulating interest rates were announced for businessmen who plan to hire new workers.
The total revenues of the IRF are planned at the level of EUR 12.38 million, based on income from interest and fees, for the existing portfolio of EUR 400 million and based on the planned realization of placements in the economy.
When it comes to expenses, they are projected at EUR 12.23 million, of which EUR 3.4 million are reservation costs for direct loans. EUR 2.9 million will go to gross wages and other employee benefits, and an additional EUR 250,000 to severance pay. The largest part of the expenditure, of 3.84 million, was planned by the IRF for interest costs, local media reports.