IRF credit for those affected by this crisis, not for past problems

The Investment and Development Fund (IRF) has received more than 200 requests from clients who want to suspend loan repayment for a period of three months in accordance with the decision of the Government and the Central Bank, as part of economic measures to mitigate the consequences caused by the coronavirus. Applications began to be submitted on Monday.

The state has opened a new, more favorable credit line with the IRF for the economic sector, which will begin to be implemented tomorrow, the fund told "Vijesti". IRF, whose director is Zoran Vukčević, will present the details to the public today.

"This credit line for improving liquidity will be used exclusively to solve the problem of illiquidity caused by the consequences caused by the coronavirus pandemic. The money can be used to purchase products, semi-finished products, raw materials and to pay salaries. The right to a loan does not exist, but the IRF makes an individual decision based on each individual request," explained the official IRF.

Terms

The conditions under which the loan is approved are: a maximum amount of up to three million euros, an interest rate of 1,5 percent, a two-year grace period and eight-year repayment, which includes the grace period.

"Taking into account the shortened procedures for allocating money, and taking into account the financial stability and sustainability of the IRF and the entire system (considering the work of the competent services and clients of the IRF who cannot respond in a short time for collateralizing the placement of the fund), the money will be to approve on the basis of soft means of security (bills of exchange, promissory notes and guarantees that the IRF can provide in a specific situation) and on the basis of mortgages", the IRF replied to "Vijesta".

Up to three million euros is approved on the basis of soft collateral (bills of exchange, bills of exchange authorizations and guarantees that the IRF can provide in a specific situation) and on the basis of mortgages, the IRF replied to "News"

In approving loans, as explained, priority will be given to medicines, medical equipment and medical vehicles, tourism and catering, transport, services, food production and processing.

"So, it is a credit line that is exclusively intended to mitigate the consequences of the newly created situation. This is a fight for life. This situation cannot be used to solve past problems. We will fight against all forms of abuse. Credit conditions for this line will be available on our website. Urgent procedures are being adopted on this basis and they will be published on the website", it was explained in the IRF.

The Fund is concluding negotiations with the European Investment Bank for a new arrangement, initiated an arrangement with the French Development Agency and renewed negotiations with the China Development Bank for a new loan. The IRF said that all this should enable additional money for the economy to overcome problems more easily.