BELGRADE (Serbia), May 19 (SeeNews) – Serbian lender Komercijalna banka [BEL:KMBN] said it has signed a loan guarantee agreement with state-owned fund Garancijski fond AP Vojvodine to support agricultural companies in the northern province of Vojvodina.
The agreement will facilitate the access to long-term and lucrative loans of agricultural companies in Vojvodina, Komercijalna banka said in a statement on Thursday.
Komercijalna banka agrees on credit lines with various institutions, in order to offer loans under favourable conditions to farmers, as the development of agriculture also stimulates non-agricultural sectors, the board member of the lender, Dragan Tesic, said in the statement.
“Garancijski fond Vojvodine and Komercijalna banka have been cooperating for ten years now and I was extremely pleased to expand the scope of collaboration to satisfy the needs of final borrowers and help them grow and expand their production,” the fund’s director Djordje Rakovic, said.
Under the agreement, the fund will guarantee loans for the purchase of agricultural land, equipment, machinery and vineyards, as well as for the financing of the construction, reconstruction and renovation of silos, temperature-controlled storage facilities and cellars, he added.
Komercijalna banka said on Tuesday its profit rose to 2.483 billion dinars ($22.5 million/20.2 million euro) in the first quarter of 2017 from 1.4 billion dinars in the first three months of the previous year.
(1 euro = 123.126 dinars)