Loans for indebted small businesses available
EUR 200m will be available in the scheme, with SID contributing EUR 149m and the Economy Ministry EUR 51m, Zdravko Počivalšek, minister of economic development and technology, told the press in Ljubljana on Friday.
Indebted small and medium-sized companies have been singled out in recent months as problematic and they account for a significant portion of the overhand of non-performing loans still held by Slovenia banks.
The central bank has repeatedly called for measures to help the sector, after non-performing loans were largely resolved for major companies with the 2013 bailout.
The EUR 200m available in the SID scheme will allow companies to continue pursuing their profitable current business while paying back old debts, according to Počivalšek.
The loans will be available either for investments or for working capital. Many firms need working capital the most to increase output, said SID chairman Sibil Svilan.
An estimated 100 companies could benefit from the loans, which will have a maturity of 8-12 years and interest of around 2-3%, below current market rates. Individuals loans will range from EUR 100,000 to EUR 5m.
Svilan said the man advantages for business would be the long maturity, favourable interest and a long moratorium (4-6 years) on the payment of the principal.
SID expects that the scheme will also lead commercial banks to offer similar products.
Companies can start filing applications on 11 March, with the public call open until 31 October 2018.