The Serbian development bank needs capacities of one billion euros which could be used as incentives to the economic development, Chairman of the Serbian Chamber of Commerce (PKS) Milos Bugarin stated on Tuesday.

The budget of EUR 400 million is insufficient, Bugarin told journalists in the PKS, noting that the Chamber has proposed a number of amendments to the law on the Serbian development bank, which are to improve this legal document.

Bugarin expressed expectation that the document will be adopted and enforced as soon as possible, and that the development bank will fulfill its purpose - to support the Serbian economy.

The Serbian government forwarded a bill on establishment of the Serbian Development Bank to the parliament on January 11.

According to the bill, that minimum capital of the bank will be EUR 400 million expressed in Serbian dinars, partly provided from the republican budget, and Serbia must be the majority owner.

The development bank will be a financial institution engaged in long-term lending to projects in which commercial banks are not interested, and which will have positive effects on overall economic development of Serbia as it would increase international competitiveness, boost exports, and reduce regional disparities in the level of development.

The primary objective of the bank will be to support the medium and small-sized enterprises, given that 99.8 percent of this sector employs 67.2 percent of Serbia's working force. The sector has labeled funding as one of the largest business hindrances.

The development bank will also encourage other economic activities, such as export, local infrastructure, energy efficiency, renewable energy sources, and other areas which promote competence of the domestic economy, export transactions, and internalization of the Serbian economy.