The Serbian Ministry of Spatial Planning will demand that the budget review envisages additional RSD 500 million (EUR 1 = RSD 102) for subsidized housing loans, minister Oliver Dulic announced.

"This year's budget envisaged RSD 2 billion for subsidized housing loans, but RSD 900 million already went to outstanding obligations. I expect that, with additional RSD 500 million, we will encourage prospective buyers, who out of fear of the crisis are in two minds whether to take out a loan or not," Dulic said in an interview for the Belgrade-based daily Vecernje Novosti.

Stressing that the crisis had a severe impact on the construction sector, Dulic said that Serbia is the only country in the region which has made certain progress in that domain.

Dulic noted that the state, as an investor, opened new building sites, hired national companies and thus prevented the construction industry from collapsing, and added that it will take years to see a lasting recovery in investment activity.