In the election year of 2016, the Investment and Development Fund (IDF) has a budget of €100 million to support development of small and medium-sized enterprises, and in the same year it has envisaged credit arrangements under much more favorable conditions than was the case in the previous year, which was non-election. In addition, a special program for employment of university graduates has been envisaged for the first time in the election year, along with granting agricultural loan through the MIDAS program, despite the fact that it is contrary to the Law on State Aid Control. The Law on State Aid Control does not apply to agricultural subsidies and aid, whereas the IDF funds are exactly the state aid.
The Investment and Development Fund has planned to invest €100 million in the development of small and medium-sized enterprises in the election year. Of this amount, €50 million is earmarked for long-term loans (€30 million through the Fund’s direct loans, and €20 million through arrangements for which commercial banks provide part of the money), and €50 million for short-term loans and factoring arrangements.
Credit lines of the Investment and Development Fund are aimed at four target groups such as developing entrepreneurship, supporting existing micro, small and medium enterprises, then supporting micro, small and medium enterprises through maintaining or improving the liquidity of a company, and finally supporting infrastructure and environmental projects of local and national importance, including projects in the field of energy and energy efficiency.
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