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EBS - Erste Bank AG News Story

€21.04 0.8  3.9%

Last Trade - 4:35pm

Large Cap
Market Cap £7.38bn
Enterprise Value £4.45bn
Revenue £7.53bn
Position in Universe 115th / 1039

UPDATE 1-Serbian state-backed pandemic loan demand nears 1 billion euros

Wed 24th June, 2020 1:56pm
(Adds details about additional lending by European Bank for
Reconstruction and Development)
    BELGRADE, June 24 (Reuters) - Demand for state-guaranteed
loans to help Serbian firms weather the coronavirus crisis has
reached almost 1 billion euros ($1.13 billion), Finance Minister
Sinisa Mali said on Wednesday.
    In April, the government approved bank guarantees worth 2
billion euros for cheap loans as part of a wider 5.1 billion
euro pandemic package.*:nL5N2C45SY
    So far, banks have approved 6,322 three-year loans with a
grace period of between nine and 12 months, while the total
value of approved loans is 526 million euros, Mali said.
    "They are working on approving requests for another 3,449
loans with a total value of 453 million euros," he added.
    Also on Wednesday, the European Bank for Reconstruction and
Development (EBRD) said it had scaled up its financing for banks
in Serbia, a European Union membership candidate, by providing
210 million euros to support small and medium-sized enterprises.
    "Greater access to finance is a lifeline for many small
businesses in Serbia as they face a drop in sales and cash-flow,
and experience supply chain disruption,” Zsuzsanna Hargitai,
EBRD regional director, said in a statement.
    Loans are available via Serbian subsidiaries of Banca
Intesa, Erste Bank  ERST.VI , Eurobank, ProCredit Bank
 PRKB.MKE  and UniCredit Bank  UCCDB.UL , the statement said.
    To help mitigate the economic impact of the coronavirus, the
EBRD expects to deliver up to 800 million euros of new financing
to the Serbian economy in 2020. 
    The International Monetary Fund and the World Bank have both
forecast that Serbia's economy will miss its 4% growth target
for 2020 and suffer a recession, but rebound in 2021. 
    The recovery programme will lead to an increase in the
deficit this year of up to 7% of economic output that will be
covered from financial reserves and borrowing. The budget
shortfall was originally forecast at 0.3% of economic output.
    The coronavirus has killed 263 people out of 13,092
confirmed cases in Serbia, which has a population of 7.2
($1 = 0.8854 euros) 

 (Reporting by Aleksandar Vasovic; Editing by Kevin Liffey)
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