At the beginning of May 2016, before representatives of the opposition entered the Government of Electoral Trust, the Investment and Development Fund (IDF) adopted the Decision on amending four loan programs, which predicted favorable conditions for loan beneficiaries, i.e. making down payments within one year from the date of concluding the loan contract.
At the end of December 2015, the IDF adopted a Decision on financing 23 support programs for the coming year, including Support to Entrepreneurship Development Program, Crediting Program for Youth in Business, Start- up Financing Program and Support to University Graduates Program.
Concerning the aforementioned loans, the IDF envisaged financing up to 70 percent of the total investment, while loan beneficiaries had to make 30 percent down payment.
Crediting Program for Youth in Business is aimed at persons under 35 years of age who will be able to obtain maximum loan of up to €50,000, with the repayment period of up to 12 years, grace period up to four years, an interest rate of 2.5 percent per year and benefits fee of 0.5 percent of the amount of approved loans that is granted in the north of the country and in Cetinje, Ulcinj and Niksic, i.e. one percent in other municipalities.
Providing loans to new entrepreneurs, or the so-called start-up, applies to new enterprises and entrepreneurs, and is aimed at creating new jobs. Loan conditions are the same as in the Crediting Program for Youth in Business, with the interest rate of 3.5 percent per year. In addition, stimulating measures for entities who employ five or more new employees are envisaged, in the form of reducing interest rates by one percent, as well as loans that are approved with guarantees of commercial banks, where the interest rate is reduced by 1.5 percent.
Complete case study download HERE (PDF)
