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Ministerie van Buitenlandse Zaken, Ambassade BelgradoMarch 2014Volume 4, Issue 1

Business News 1-3

Agriculture 3

Trade Fairs in March-May

3

Inside this issue:

In this edition:

x�Netherlands SupportsWasteWater Manage-ment Project Leskovac

x�Brochure ‘FinancingDutch Business in Ser-bia’ now Available

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Source: NBTC - Luider Imago Fotobureau

Business NewsNetherlands Supports Waste WaterManagement Project in LeskovacOn 14 February 2014, the Minister of Energy,Development and Environmental Protection ofthe Republic of Serbia, Zorana Mihajlovic, andthe Netherlands Ambassador to the Republicof Serbia, Laurent Louis Stokvis, signed theGrant Agreement for the development phaseof the project "Waste Water Management Pro-ject Leskovac", on behalf of the Governmentsof Serbia and the Kingdom of the Netherlandsrespectively.The Waste Water Management Project inLeskovac (Southern Serbia) consists of thedesign, construction and subsequent operationof a wastewater treatment system for the townof Leskovac and its suburbs.The value of Dutch contribution at this stage isapproximately Φ480.000. The development

phase consist of a project plan which includes adescription of the project organisation, a time-line, a detailed technical design, an environ-mental and socioeconomic impact report, re-search reports, a cash flow analysis, a financingplan, a procurement plan, an implementationplan and an operation and maintenance plan.The expected date of the end of the develop-ment phase is December 31st, 2014.ORIO grants contribute to the development,implementation (construction and/or renova-tion and/or expansion), operation and mainte-nance of public infrastructure in developingcountries. This grant facility is provided by theDutch Ministry of Foreign Affairs under theresponsibility of the Minister for DevelopmentCooperation. Please visit the ‘Project in Focus’page on http://serbia.nlembassy.org for moredetailed information on the Leskovac project.

Business news (continued)

Pa ge 2 EZ New s l e t te rS e rb ia a n d Mo n te ne g ro

V o l ume 4, I s su e 1

Working Breakfast for Dutch Businesses

On January 30th, 2014, the Embassy of the Kingdom ofthe Netherlands hosted about 60 guests at the workingbreakfast where the new brochure: “Introduction to Fi-nancing Dutch Business in Serbia” was presented. Thebrochure provides a brief overview of the financing sour-ces available for Dutch firms operating, or looking tooperate, in Serbia.

The presentation was followed by a panel session on fi-nancing business in Serbia, with panelists from EBRD,AOFI, USAID/BEP, Komericijalna Banka and a Serbianbased Dutch firm “Todebo”.The complete version of thebrochure can be found at the annex of this newsletter.

Call for Greenfield and Brownfield Investors for Pro-jects in Odzaci and Kula (North of Serbia)The Netherlands Embassy in Serbia in cooperation withNALED (The National Alliance for Local Economic De-velopment) invites all interested Dutch investors to consid-er the investment opportunities (both brownfield andgreenfield) in Serbian municipalities Odzaci and Kula.The project team of NALED also plans to make a busi-ness trip to the Netherlands and talk with potential inves-tors. For interested investors a meeting can be arrangedwith representatives of NALED. If you need more infor-mation do not hesitate to contactMr. Dusko Krsmanov-ic: +381 11 2023 921 dusko.krsmanovic@minbuza.nlMore detailed information in English can be downloadedat following link: http://bit.ly/1cyL93E

Serbia Requires Nine Terminals for Ship Waste

Transportation Minister Aleksandar Antic announced lastweek that Serbia has no terminal for the disposal of shipwaste, adding that a total of nine terminals should be builton the Danube, Sava and Tisa river.

Antic told the press that the Secretariat for EnvironmentalProtection of the City of Belgrade would set aside RSD 10million for the preparation of a study on the constructionof the terminal in Belgrade, which will point to appropriatelocations for this facility.

He mentionned that six terminals should be built on theDanube, two on the Sava, and one on the Tisa River. Forall interested Dutch companies who wish to learn more onthis opportunity, we can organize a meeting with the Serbi-an Ministry of Transport. Please get in touch with Mr.Dusko Krsmanovic: +381 11 2023 921dusko.krsmanovic@minbuza.nl

REECO Group to Organize its First Fair Trade andConference in Belgrade in June

German REECO Group, leading fair and congress organ-izer for the area of renewable energy and energy efficiencyin Central and Eastern Europe, expands to Serbia andWestern Balkans. On June 11-12, REECO Group will or-ganize RENEXPO Western Balkans International TradeFair andConference on Renewable Energy and Energy Efficiencyin Sava Centre in Belgrade.

Parallel to trade fair exhibition there will be several special-ized conferences organized - wind energy, photovoltaic, bioenergy and hydropower and geothermal energy confer-ences. The event represents an important platform for Ser-bian and international experts, decision makers, serviceproviders, project partners to meet and exchange profes-sional experience, present products and services and shareideas and information. More info about the conference athttp://renexpobelgrade.com (Balkan Green Energy News).

The Second Annual Balkan Wind Power and Hydro-Tech B2B Conference and Exhibition

Following the success of last year’s edition, the BalkanWind Power together with the HydroTech Balkans will beheld on 24-25 March 2014 in Belgrade. The event is one ofthe leading energy conference and exhibition for wind andhydro energy in the region. This event is fully dedicated tobringing together developers, financials, investors and lea-ding technology providers under one roof. The 2nd annualBalkan Wind Power and HydroTech B2B conference andexhibition will host 120 attendees from major developers,ministries, financials, lawyers, energy regulatory agencies,traders, utilities and technology companies with 20 exhibi-tion stands. The program will feature over 60 speakers,companies from Vestas, GES, GEG, Koncar Gim, Mega-joule, EBRD, EIB, Finance in Motion, Koessler, ESHA,Global Hydro Energy, Wasserkraft, Geppert, Sewea andmany more. More info can be found athttp://greenworldconferences.com (Balkan Green EnergyNews).

Pa ge 3 EZ New s l e t te rS e rb ia a n d Mo n te ne g ro

V o l ume 4, I s su e 1

Φ 1,4 Billion to be Invested in SerbianRailways

In next three to four years, starting from2014 a total amount of Φ1,4 billion willbe invested in railways in Serbia. Fund-ing will come out of loans from Kuwait,Russia, the Czech Republic, the Europe-an Investment Bank (EIB) and the Eu-ropean Bank for Reconstruction andDevelopment (EBRD). Dragoljub Si-movic, General Manager of ZelezniceSrbije (Railways of Serbia), stressed onMarch 6, that an annex to an agreementon a railway project financed by Russianloans will be signed.

This credit amounts of Φ800 million.This will be used to upgrade the corridor10 railway route of 112 kilometers inlength. Simovic added that as from Sep-tember this year, Swiss Stadler RailGroup will deliver 21 electric multipleunit (EMU) passenger trains toZeleznice. Zeleznice have cut its loss in2013 to RSD 4,5 million from RSD 12,8million in 2012.

Strategy for Agriculture and RuralDevelopment 2014 -2024

The Ministry of Agriculture of Serbia hasdrafted a document “Strategy for Agri-culture and RD 2014-2024.” This Strat-egy document represents an umbrelladocument of the Serbian Ministry ofAgriculture that defines long term devel-opment goals, priorities and frameworksfor institutional reforms in the agricul-tural sector in the coming 10 years.

The Strategy document provides a gen-eral view on the current state of affairs inthe Serbian agricultural sector. It pro-vides (1) a vision, (2) a designation ofstrategic goals and (3) selects priorityareas that the Ministry would like todevelop in the next 10 years.

The Strategy document fully incorpo-rates the concept of sustainable develop-ment and a new approach to agricultureas an important economic activity. Thedocument is in compliance with CAPand all priorities and goals as specified inthe EU agro policy.

Agriculture

Belgrade Fairs

04.03.2014 - 06.03.2014

Food & Beverage Fair

07.03.2014 - 10.03.2014

International Nautic Fair

22.03.2014 - 31.03.2014

International Car show & In-ternational Exhibition of Mo-torcycles

04.04.2014 - 07.04.2014

18th International HorticultureFair “Beoplant Fair”

16th Exhibition of MedicineHerbes & Honey Products

Montenegro

It visions the state of Serbian agriculturein 2024 as a sector whose development isbased on knowledge, modern technolo-gies and production standards that willoffer innovative agro products to thelocal and global market. This will beachieved by sustainable management ofnatural resources, the environment andthe cultural heritage of the rural areas.

For the first time the Strategy documentcontains a budget framework – dividedby time periods and pillars correspond-ing to strategic goals and priority areas.

Pig Seminar in South-Eastern Europe

The agriculture departments of theNetherlands’ embassies in Hungary, Ro-mania and Serbia are organizing a seriesof seminars on developments in de pigindustry in the EU and the region. About10 Dutch companies will join two ex-perts during this week-long visit. OnWednesday April 2nd, the seminar willbe held in Novi Sad, Serbia. The Nether-lands embassy in Belgrade is workingclosely with the Chamber of Commercein the organization of this event.

Business NewsContinued

Trade Fairs March - May

16.04.2014 - 20.04.2014

39th International Fair ofCivil Engineering - SouthEast Europe BelgradeBuilding Expo

25.04.2014 - 26.04.2014

8th BelIRE—InternationalFair of Real Estate & In-vestments

13.05.2014 - 17.05.2014

57th International Fair ofTechnic & Innovations

21.05.2014 - 23.05.2014

7th South-East EuropeanGaming Expo Belgrade

19.03.2014 - 23.03.2014

Fair of Furniture, Equip-ment for Offices & Hotels

19.03.2014 - 23.03.2014

Art Fair - Art Expo

03.04.2014 - 05.04.2014

International Tourism Fair

03.05.2014 - 05.05.2014

Food Fair

03.04.2014 - 05.04.2014

Ecology Fair

01.05.2014 - 04.05.2014

Nautic Show

To subscribe/unsubscribe pleasecontact Ms. Judith Bueving:judith.bueving@minbuza.nl

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Introduction to Financing Dutch Business in Serbia

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ContentsIntroduction 3

1 Multilateral and Bilateral Institutions 4

1.1 European Bank for Reconstruction and Development 5

1.2 European Investment Bank 6

1.3 International Finance Corporation 7

1.4 FMO 8

2 Comparative Overview of Financial Products O!ered by Local Commercial Banks 9

3 Serbian State Support 12

3.1 Supporting Employment by the National Employment Agency in Serbia 13

3.2 Serbian Export Credit and Insurance Agency - AOFI 14

4 Annexes 15

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Introduction

Smart business decisions depend on reliable information. But obtaining and processing that information comes at a cost, and is o!en more di"cult when operating, or starting a business in another country. Discovering the best location, learning about local laws and customs, and finding out about available sources of funding are important steps in building your business abroad. Yet you might have limited resources available for the exploration of these important factors.

Through our daily work and communication with companies we realize how di"cult it can be to obtain and process relevant informa-tion on operating in Serbia. We are aware it can be especially challenging to find the optimal way of financing your business. This brochure gives you a brief overview of major financing sources available for Dutch firms operating, or looking to operate, in Serbia, including financial support mechanisms o#ered by the government of Serbia, especially with regard to export. It points to institutions that o#er various types of project or export financing in Serbia. While the brochure naturally cannot provide detailed advice regarding the suitability of individual financing schemes for specific projects, it does o#er you some general directions and guidelines for addressing potential partners. We hope that this makes your search for funding shorter, easier, and more e"cient. So that you do not miss out on great opportunities to innovate, benefit the community, and grow your business.

The brochure is divided in three sections. The first part is primarily focused on financing larger projects. It describes funding via multilateral institutions, including the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the International Finance Corporation (IFC) and the Dutch Development Bank (FMO). All institutions o#er a wide range of financial services and products. We made a selection of the most general credit lines, which can serve as navigation points during your search. The second part of the brochure includes a comparative analysis of multi-purpose and working capital loans o#ered by local commercial banks in Serbia, presented in the form of a table. The third part of the brochure describes state support programs estab-lished to foster employment, together with the services o#ered by the Serbian Agency for Export Credit and Insurance. The annexes include contact details of local commercial banks which can be contacted for further information on how to finance your operations.

Laurent Stokvis, Ambassador

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Multilateral and Bilateral Institutions

1

Financing larger projects

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EQUITY FOR LARGE PROJECTS

EQUITY FOR SMALL PROJECTS

LOANS FOR LARGE PROJECTS LOANS FOR SMALL PROJECTS

AMOUNT ! 2 million - ! 100 million

N/A ! 5 million - ! 250 million N/A

MATURITY Long term N/A 5 - 15 years N/A

OTHER DETAILS Eligible sectors:Industry, infrastructure and the "nancial sector

Indirect via local commercial banks supported by the EBRD*

Grace periods and hedging are possible

Indirect via local commercial banks supported by the EBRD*

REQUIREMENTS Depend on risks and prospective returns associated with each project.

Consistent with EBRD policy

- Sponsor- Insurance against normally insurable risks - Secure loan with company assets- Typical project "nance covenants

- Sound business plan- Solid management- Competitive products- Information on owners and partners - Financial history- Security in the form of pledges/mortgages- Due a#ention for environmental standards - Equity contribution of around 35%

* A list of all local commercial banks supported by the EBRD together with the contact details can be found in annex I

1.1 European Bank for Reconstruction and Development

The EBRD is an international financial institution that supports projects from central Europe to central Asia. It provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. The EBRD also works with publicly owned companies.

The EBRD uses a broad range of financing instruments, tailored to specific projects. The main instruments are loans, equity investments and guarantees. For more insight in the la!er, we advise you to take a look at the EBRD website or contact the EBRD directly.

In order to be eligible for either of the above products, your company or enterprise must meet the following criteria - your operations must be located in Serbia, they must not be in defense-related activities, tobacco, substances banned by international law or gambling facilities. Also, they must not relate to subsidies, sponsorship or donations.

Spanskih Boraca 3, 6th floor | 11070 Novi Beograd | +381 11 212 0529 | www.ebrd.com

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LOANS FOR LARGE PROJECTS

LOANS FOR SMALL PROJECTS

ELENA – EUROPEAN LOCAL ENERGY ASSISTANCE

RSFF – RISK SHARING FINANCE FACILITY

AMOUNT Minimum ! 25 millionthe EIB will cover up to:30% - 50% of the total investment costs

N/A Up to 90% of the technical support cost

Maximum ! 10 billion for projects with a higher than normal risk/reward pro"le

MATURITY Long term N/A N/A Long term

OTHER DETAILS Eligible sectors:Infrastructure, energy e#ciency, renewable energy, transport and urban renovation.

Indirect via local commercial banks supported by the EIB*

The EIB aims to maximize investment in sustainable energy and covers up to 90% of the technical support cost needed to prepare, implement and "nance an investment program.

ELENA can also help a$ract funding from private banks and other sources, including the EIB.**

The Risk Sharing Finance Facility (RSFF) improves access to "nancing for all types and size of private company and public institution undertaking research, development and innovation (RDI) projects.***

Projects backed so far include clean auto technology, energy e#ciency, pharmaceuticals, bio-medical engineering, transport and communication.

REQUIREMENTS Projects must be economically, "nancially, technically and environmentally sound.

Other requirements depend on the investment type and the security o%ered by third parties.

N/A N/A The project must be technically, economically, "nancially and environmentally sound.

Project must also be promoted by creditworthy counterparties based in the EU and certain partner countries

* A list of all local commercial banks supported by the EIB together with the contact details can be found in annex II **Detailed information can be found via the following link: h!p://www.eib.org/a!achments/thematic/elena_en.pdf*** Detailed information can be found via the following link: h!p://www.eib.org/a!achments/rs"_faq_31052007.pdf

1.2 European Investment Bank

The EIB, the European Union’s bank, is the largest multilateral borrower and lender by volume. It provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of their activity is focused on Europe.

The vast majority of EIB financing is through loans, but they also o!er guarantees, microfinance and equity investment. Support from the EIB also helps to unlock financing from other sources. The table includes products that might be interesting for you. Yet, for a complete overview we advise you to take a look at their website.

Vladimira Popovica 38-40 | 11070 Belgrade | +381 11 3121 756 | www.eib.org

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A-LOANS - DIRECT LOANS EQUITY FINANCE

AMOUNT ! 1 million - ! 100 millionThe IFC will cover up to:- 25% for green"eld projects- 35% for small projects- 50% for expansion projects

5% - 20% of a project’s equity

MATURITY 7 - 12 years 8 - 15 years

OTHER DETAILS Eligible:Private sector projects in developing countries

IFC takes equity stakes in private sector companies, "nancial institutions and investment funds.

REQUIREMENTS Case by case Case by case

1.3 International Finance Corporation

The IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. It operates on a commercial basis: IFC invests solely in for-profit projects in developing countries and charges market rates for its products and services.

In Serbia, the IFC focuses predominantly on the development of the financial sector, with a special emphasis on SMEs and energy e!ciency lending. Other sectors such as infrastructure, agribusiness, waste management and value-added manufacturing are also priority.

In addition to A-loans and Equity Finance, IFC also makes loans to intermediary banks, leasing companies, and other financial instituti-ons for on-lending. The credit lines are o"en targeted at small and medium enterprises or at specific sectors. For more information on the products and services o#ered by the IFC we advise you to visit their website or contact the corporation directly.

Bulevar Kralja Aleksandra 86 | 11000 Belgrade | + 381 11 3023 750 | www.ifc.org

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DIRECT LOANS FOM – FONDS OPKOMENDE MARKTEN

PRIVATE EQUITY

AMOUNT up to 25% of a company’s balance sheet or up to 25% of the estimated investment costs

! 500.000 - ! 10.000.000 N/A

MATURITY 3 - 12 years 3 - 12 years N/A

OTHER DETAILS Grace period: possible Eligible: Companies with a Dutch interest of at least 51% and a turn-over of approximately ! 15 million.

Primary sectors:Agri- and horticulture, transport, logistics, agro-processing and manufacturing.

Real estate and the "nancial sector are excluded

Direct equity investments in "nancial institutions or energy companies and projects

REQUIREMENTS Case by case Download document* Case by case

1.4 FMO

FMO is the Dutch development bank. It finances companies, projects and financial institutions from developing and emerging markets.

FMO o!ers several financing and services products, from loans and credits and guarantees to mixed packages, o"en in local currencies. In addition, FMO’s involvement, reputation and experience o"en gives incentive for other commercial banks to open up their services, mobilizing substantial long-term capital.

In accordance with other big development institutions, FMO also o!ers loans to financial sector institutions for on-lending. Last year, the bank provided a # 20 million senior loan to Komercijalna Banka and in 2012, FMO supported Cacanska Banka with # 7 million. The loans will support the Serbian banks to further expand their lending activities to small and medium businesses.

Anna van Saksenlaan 71 | 2593 HW The Hague | +31 70 314 9696 | www.fmo.nl

* In order to assess whether your company ful!lls the necessary requirements download the “quick scan” document on: www.fmo.nl/fom

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Comparative Overview of Financial Products O!ered by Local Commercial Banks

2

Financing smaller projects

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Bank Banca Intesa Komercijalna Banka

UniCredit Bank Rai!eisen Bank Societe Generale Hypo Alpe-Adria-Bank

Type of Lender Commercial Bank Commercial Bank Commercial Bank Commercial Bank Commercial Bank Commercial Bank

Type of Product Working Capital Credit Multi Purpose Working Capital Credit Multi Purpose (RSD only) Working Capital Credit Working Capital Credit

Loan ammount (minimum)

! 5.000 depending on credit-worthiness and o"ered security instruments

! 3.000 N/A ! 500 ! 1.000

Loan Amount (maximum)

! 150.000 depends on creditworthi-ness and o"ered security instruments

! 200.000 RSD 10.000.000 (EUR 90.000)

depends on creditwor-thiness

N/A

Loan Term (range in months)

12 - 24 months up to 24 months up to 24 months up to 60 months up to 24 months up to 35 months

E!ective Interest Rate (RSD)

20,52% to 21,58% case by case from 19.89% from 23.81% 17% to 22% (IR) Od 6M BELIBOR + 3,8% (IR)

E!ective Interest Rate (EUR)

12,52% to 13,41% case by case from 13.90% N/A 11.50% to 15.75% (IR) Od 3M EURIBOR + 7,5% (IR)

Payment Type monthly monthly N/A N/A monthly monthly, quarterly, half-yearly, annual

Allowable Grace Period

up to 6 months up to 6 months N/A N/A up to 6 months N/A

Other Fees N/A N/A 2% one time fee and 0,3% quarterly

N/A 1% to 1.5% of the loan amount

from 0,3%

Collateral Re-quirements

pledge on movables, co-debtor, bonds of old foreign currency saving, bonds, mortgage

case by case case by case pledge on movables, mortgage, authorizations and promissory note

indemnity agreement of another legal entity, pledge or mortgage

pledge or mortgage

Additional Prod-ucts Available for SMEs

revolving credit, short term credit, long term investment credit, long term credit for entrepre-neurs, guarantees, le#er of credit, overdra$

micro business credit, short term credit, working capital credit, revolving credit, invest-ment credit, overdra$, export %nancing

fast business credit (within 24 hours), investment credit, overdra$, guarantees (documentary business), subsidized loans

overdra$, (unsecured) working capital loan, short term credit, long term credit, guarantees (documentary products), revolving credit

overdra$, express loan, investment loan, subsidized credit for equipment purchase

real estate credit, business equipment credit, revolving credit, overdra$

Sector Speci"c Products

Agriculture and Energy E&ciency , Real Estate

Agriculture and Energy E&ciency

Agriculture and Real Estate

Energy E&ciency (KfW credit line)

N/A Agriculture

Bi- and Multilat-eral Institutions' Credit Lines

EFSE, LEDIB (fund for local economic devel-opment in the balkans), Italian Government,

EFSE, EAR, Italian Government, EBRD, EIB, FMO

Italian Government and EIB

EIB, KfW N/A N/A

2. Comparative Overview of Financial Products O!ered by

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Bank Sberbank AIK Banka Alpha Bank Erste Bank ProCredit Bank Pireaus Bank

Type of Lender Commercial Bank Commercial Bank Commercial Bank Commercial Bank Commercial Bank Commercial Bank

Type of Product Working Capital Credit Multi Purpose Working Capital Credit Working Capital Credit (RSD with currency clause)

Working Capital Credit Working Capital Credit

Loan ammount (minimum)

€ 5.000 € 10.000 € 500 N/A N/A € 50.000

Loan Amount (maximum)

up to 10% of the total annual operating income

€ 200.000 € 100.000 depends on creditwor-thiness

N/A depends on creditwor-thiness

Loan Term (range in months)

up to 12 months 18 - 36 months 6 - 36 months up to 24 months up to 36 months up to 60 months

E!ective Interest Rate (RSD)

N/A N/A from reference interest rate +7% to +10% (IR is variable)

N/A N/A from 16.25% (NIR: 2w repo + 4%)

E!ective Interest Rate (EUR)

from 13.57%  10% - 12% (IR) from 17% (NIR) N/A from 9.91 % from 19.6% (NIR: 3m belibor + 8%)

Payment Type monthly or quarterly monthly or quarterly N/A monthly N/A N/A

Allowable Grace Period

N/A N/A N/A N/A N/A up to 12 months

Other Fees 2% one-time fee 1% of lump sum N/A N/A N/A 0.5% to 1%

Collateral Re-quirements

bill of exchange, guar-antee of a legal entity and/or natural person, mortgage

pawns, mortgages, war-ranties and other types of guarantees

N/A promissory notes with a “no protest” clause and authorisation, promisso-ry notes of owners and founders, contractual authorisations

N/A promissory notes, mortgage on registered residential or business real estate or real estate under construction, guaranty of individual or legal entity, deposit

Additional Prod-ucts Available for SMEs

real estate credit, car and equipment credit, revolving credit, re#nanc-ing credit, overdra$

export #nancing credit overdra$, bills of ex-change, revolving credit, business equipment credit, real estate credit, guarantees and le%ers of credit, #xed assets and investment credit

short term credit, liquidi-ty credit, working capital credit, export operations credit, revolving credit, re#nancing credit, long-term credit, investment credit, non-current working assets credit, let-ter of credit, guarantees, overdra$

investment credit, re#-nancing credit, liquidity and current assets credit, commercial and passen-ger vehicles, revolving credit, overdra$, docu-mentary products

general purposes credit, investment credit, re-volving credit, long term investment credit, long term real estate credit, overdra$, le%er of credit

Sector Speci"c Products

Energy E&ciency N/A N/A N/A Energy E&ciency and Agriculture

N/A

Bi- and Multilat-eral Institutions' Credit Lines

N/A N/A N/A EIB EIB N/A

Local Commercial Banks

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Serbian State Support

3

Supporting Employment by the National Employment Agency and Export Financing and Insurance

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UNEMPLOYMENT CATEGORY

REQUIREMENTS TO BE MET BY THE EMPLOYEE

DURATION OF THE EXEMPTION RIGHTS FOR EMPLOYERCONTRIBUTIONS BY EMPLOYER

OBLIGATION TO KEEP THE EMPLOYEE EMPLOYED AFTER EXPIRATION OF THE INCENTIVE

Persons older than 50 years

Employee must be older than 50 years on the date of concluding the employment agreement.

100% exemption for 2 years At least 3 years of employment

Persons older than 45 but younger than 50 years

- Employee must be older than 45 years on the date of concluding the employment agreement.- Employee is a past user of !nancial compensation by the National Employment Agency (NEA) during the period of unemployment or registered as an unemployed person at the NEA for a consecutive period of at least 6 months.

80% exemption for 2 years At least 3 years of employment

Trainees - Person has the status of trainee according to the labor law of the Republic of Serbia- Person is younger than 30 years- Person is registered as an unemployed person at the NEA

100% exemption for 3 years At least 3 years of employment

Persons younger than 30 years

Employee is registered as an unemployed person at the NEA for a consecutive period of at least 3 months.

100% exemption for 2 years At least 2 years of employment

Persons with disabilities

Employee must have a medical record

100% exemption for 3 years No obligation

3.1 Supporting Employment by the National Employment Agency in Serbia

The National Employment Agency of the Republic of Serbia o!ers a"ractive advantages for companies providing employment to a particular group of people.

The Serbian law on social insurance states that an employer who employs a person, who belongs to a specific unemployment-category, for an indefinite period of time, has the right on exemption from paying obligatory social insurances which are at the expense of the employer.

In 2013, the National Employment Agency also o!ered additional financial support for companies employing people from vulnerable, underdeveloped regions. The support per employee ranged from # 1000 to # 4000. However, it is still not clear whether this type of financial support will be available in 2014 and future years. We advise you to contact the National Employment Agency of the Republic of Serbia for more information.

Kralja Milutina 8 | 11000 Belgrade | +381 11 29 29 800 | www.nsz.gov.rs

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SHORT-TERM EXPORT CREDIT INSURANCE

FACTORING SHORT-TERM EXPORT CREDIT FINANCING

GUARANTEE ISSUANCE

PRODUCT DESCRIPTION

Insures against short term commercial risks towards foreign buyers for delivered goods or rendered services.

Implies the repurchase of the exporters’ receivables to domestic and foreign debtors by means of which the exporter surpasses current liquidity issues.

Implies !nancing of working capital based on a concluded export contract, with a simple approval procedure and under favorable interest rates.

Through which a buyer requests a mode of insurance which will cover the exporter’s business performance.

BASIC CONDITIONS TO BE MET

- The client or adherent must be an exporter.- There must be a solid contract between the adherent and its debtor/buyer for invoiced and delivered goods.- The client must have positive net results.

3.2 Serbian Export Credit and Insurance Agency - AOFI

AOFI, the Serbian Export Credit and Insurance Agency, was established in July 2005 and is the o!cial export credit agency of the Republic of Serbia. The agency is 100% owned by the state.

Although AOFI is a relatively young institution, during the past nine years it has become an important determinant of Serbian economic growth and internationalization of its companies. Being focused on stimulating and supporting exports, developing economic relations with international business entities and reducing the overall risks arising from international trade, AOFI’s main objective is the strategic improvement of the business environment for Serbian exporters by means of providing a wide range of export credit insurance and financing products and services.

The scope of AOFI activities comprises of the following short term export credit insurance and export credit financing. For a detailed overview of the products’ terms and conditions we advise you to contact AOFI directly or visit their website.

Reducing the foreign trade deficit of the Republic of Serbia, thus the increase in export revenues, is only possible through a significant increase in exports. Therefore, encouraging export activities is a strategic interest of the Republic of Serbia in which AOFI is working intensively.

Headquarter O!ce | Nikole Pasic Street 30 | 31000 Uzice | +381 31 521 561 | www.aofi.rs Branch O!ce | Bulevar Zorana Djindjica 121 | 11070 Belgrade | +381 11 2205 750 | www.aofi.rs

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Annex

4

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BANK HEAD OFFICE CONTACT DETAILS

CUSTOMER CONTACT WEBPAGE SECTOR SPECIFIC PRODUCTS

!a"anska Banka Pivarska 1 32000 !a"ak +381 32 302 100 +381 32 302 200+381 30 302 203

MSME lending department+381 32 302 153nikola.ranitovic@cacanskabanka.co.rs

www.cacanskabanka.rs Energy E#ciency Reusable Energy

Opportunity Bank Serbia

Bulevar Oslobodjenja 2a21000 Novi Sad+381 21 530 111+381 21 530 024

Business lending +381 21 4893122nrakocevic@obs.rs

Agro rural lending +381 11 6557 997oadamovic@obs.rs

www.obs.rs Agriculture

ProCredit Bank Milutina Milankovica 1711070 Novi Beograd+381 11 2077 906

Small Business+381 11 2057 000small.business@procreditbank.rs

www.procreditbank.rs Energy E#ciencyAgriculture

Societe Generale Bulevar Zorana Dindica 50a/b11070 Novi Beograd+381 11 3011 555

MSME lending +381 11 3011 400privreda.sgs@socgen.com

www.societegenerale.rs N/A

UniCredit Bank Rajiceva 27-2911000 Belgrade+381 11 3777 888

Mid-Market Customers Unit+381 11 3204 575milos.bojanic@unicreditgroup.rs

www.unicreditbank.rs AgricultureReal Estate

ANNEX I – Local commercial banks supported by the EBRD*

* The information is retrieved from: h!p://www.ebrd.com/downloads/funding/micro-small-medium.pdf

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ANNEX II – Local commercial banks supported by the EIB*

BANK HEAD OFFICE CONTACT DETAILS

CUSTOMER CONTACT WEBPAGE SECTOR SPECIFIC PRODUCTS

Rai!eisenbank Djorda Stanojevica 16 11070 Novi Beograd+381 11 3202 100

Mrs. Ljiljana TuropoljacFinancial Institution Correspondence Department+381 11 2207 161 ljiljana.turopoljac@rai!eisenbank.rs

www.rai!eisenbank.rs N/A

Banca Intesa Milentija Popovica 7b11070 Novi Beograd+381 11 3108 888

Mrs. Jasmina Jankovic Relationship Manager Financial Institutions+381 11 201 1401jasmina.jankovic@bancaintesa.rs

www.bancaintesa.rs Agriculture Energy E"ciencyReal Estate

KBC Banka Omladinskih Brigada 90v 11070 Novi Beograd+381 11 4409 667

Mrs. Lidija Vladisavljevic Executive Director for Credit and Risk Management+381 11 3050 384lidija.vladisavljevic@kbcbanka.rs

www.kbcbanka.rs N/A

ProCredit Bank Milutina Milankovica 1711070 Novi Beograd+381 11 2077 906

Mrs. Jelena GrbicControlling Department+381 11 2077 906j.grbic@procreditbank.rs

www.procreditbank.rs Energy E"ciencyAgriculture

Erste Bank Milutina Milankovica 11b11070 Novi Beograd+381 60 7979 000

Mrs. Dijana Jankovic-JasicHead of ALM Department+381 11 2015 083dijana.jankovic-jasic@erstebank.rs

www.erstebank.rs N/A

Credit Agricole Brace Ribnikara 4-621000 Novi Sad

Mr. Zeljko ObradovicChief Financial O"cer+381 21 4876 834zeljko.obradovic@creditagricole.rs

www.creditagricole.rs Agriculture

* The information is retrieved from: h!p://www.eib.org/a!achments/lending/inter_rs.pdf

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Disclaimer

This publication has been prepared solely for informational purposes. While the Embassy of the Kingdom of the Netherlands has endeavored to ensure the accuracy of the information, it does not guarantee or give any warranty as to the accuracy, timeliness or completeness of any information or material in this publication. We accept no liability for its content, or for the consequences of any actions taken on the basis of the information provided. All information expressed herein is current as of publication date and subject to change without notice.

Front page photo: © Marc Heeman / Ro!erdam Image BankPage 2 photo: © Totenmetontwerpen / Ro!erdam Image BankPage 18 photo: © Energising the FutureLast page photo: © B en U, DiemenIf necessary, the Communications department of the Ministry of Foreign A"airs may be contacted regarding information about the copyright holder: com@minbuza.nl

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Embassy of the Kingdom of the Netherlands Simina 29 | 11000 | BelgradeT +381 (0)11 20 23 900 F +381 (0)11 20 23 999bel@minbuza.nlwww.nlembassy.rsJanuary 2014