IRF tasked with easing the way to loans

The deadline by which the Investment and Development Fund (IDF) should, in consultation with the Central Bank (CBCG), and at the behest of the Government, relax the procedures for approving loans for company liquidity, which were announced at the end of March, and amend the annual work plan in order to him inserted emergency support for the economy expires today.

"Regarding the preparation of new procedures for loan approval, we have already done that, the IRF works according to shortened procedures, there are some details that need to be coordinated with the CBCG for the upcoming credit lines that the IRF is planning", was answered by "Vijesti" from the IRF.

The Minister of Finance Darko Radunović said last Friday, when the Government established the second package of economic measures, that he was tasked with the IRF to propose to the Government an amendment to the annual work plan by April 30 in order to add urgent support to entrepreneurs, small, medium and large enterprises, and to in consultation with the CBCG, until then, simplify the procedures for the approval of liquidity loans, which were announced on March 25.

The CBCG officially replied to "Vijesti" that they do not have the legal authority to prescribe the procedures, criteria and conditions for the fund's loan approval, that this is the exclusive competence of its board of directors, and that the CBCG is in charge of business control in accordance with the law on IRF and regulations of the supreme monetary institution.

Minister Radunović announced that the IRF should change its internal procedures, reduce the number of required documents, and shorten the procedures for the approval of liquidity loans, while simultaneously managing liquidity risk and operational risk adequately.

Prime Minister Duško Marković said yesterday in parliament that the IRF approved 143 loans in the total amount of 28,2 million euros as of yesterday, while another 191 requests are being processed.

Part of the entrepreneurs complained that it was difficult and slow to get a more favorable credit line in the amount of up to three million euros, and the IRF replied that the legal procedures for approving loans and the rules of the CBCG must be followed, and that loans without collateral would constitute a criminal offense . They also emphasized that they do not give loans to solve problems from the past, but for those affected by the crisis due to the coronavirus. A total of 120 to 130 million euros was secured through loans from the state IRF.

The Prime Minister announced that the IRF approved 28,2 million until yesterday

The IRF received about 720 requests (as of April 24). The credit line for liquidity is called "for survival", the repayment term is up to 8 years and includes a grace period of up to two years, the interest rate is 1,5 to XNUMX percent, and the IRF said that they provided soft security instruments and a wide range collateral instrument.