Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said that the aim of the new dinar loans is to increase the purchasing power of citizens, to stimulate domestic demand, enable speedier economic growth, to strengthen the dinar currency and boost domestic production.

Dinkic told a press conference that the government will adopt the programme on new dinar consumer loans for citizens on March 26.

The Deputy Prime Minister pointed out that there will be two types of loans: dinar consumer loans for the purchase of domestic products and services, and dinar cash loans.

He added that commercial banks will provide RSD 30 billion for these loans, while the state will provide subsidies amounting to RSD 1.5 billion.

Dinkic announced that the government will sign the first contracts with commercial banks next week, noting that the banks will allocate RSD 10 billion for cash loans, whereas the line ministry will secure RSD 500 million for subsidies.

He explained that the maximum amount for individual cash loans will be RSD 300,000, with an interest rate of 7.5% for citizens whose monthly income is below RSD 30,000, and 8.95% for citizens whose incomes vary between RSD 30,000 and RSD 80,000.

The repayment period of these loans will be three years, with a grace period of 12 months, with the users being employees, pensioners and farmers who have registered their households.

Dinkic said that the dinar consumer loans will be approved for the purchase of domestic furniture, flooring, appliances, building materials, sanitary facilities and tourist packages in Serbia.

The state will subsidise loans for citizens whose incomes are below RSD 30,000 per month in the amount of 5.5%, while the subsidy for those who earn between RSD 30,000 and RSD 80,000 is 4%, he noted.

The Deputy Prime Minister stressed that the amount of cash loans is not limited and will depend on the solvency of the client.