Legal Acts in English

This Law shall regulate the conditions, procedure, amount and method of providing funds for issuing guarantees of the Republic of Serbia relating to the guarantee scheme defined by this Law, the criteria, conditions and method for making the loans available by the banks, reporting, as well as other issues of significance for the guarantee scheme as an economic support measure, with a view to mitigating the economic consequences caused by the pandemic of COVID-19 illness caused by SARS-CoV-2 virus, aimed at increasing liquidity of economic operators.

Individual terms used in this Law shall have the following meanings:

1) bank - shall have the meaning determined in the law governing banks;

2) loan - the loan approved to a beneficiary by the bank, in compliance with the agreement concluded between the bank and the loan beneficiary, which is collateralized by a guarantee in accordance with the conditions prescribed by this Law;

3) renewed loan - shall mean a new loan approved to a loan beneficiary by the bank for liquidity and working capital which is collateralized by a guarantee in accordance with the conditions prescribed by this Law, and replacing the existing amounts of bank receivables which are maturing or expiring after the conclusion of guarantee agreement by the Republic of Serbia, National Bank of Serbia and the banks concluded in compliance with this Law, which were agreed before the date of conclusion of the guarantee agreement by the Republic of Serbia, National Bank of Serbia and the banks in compliance with this Law and which fall due by 30 June 2022^* at the latest;

4) intended purpose of a loan collateralized by a guarantee in compliance with this Law - shall mean liquidity and working capital financing;

5) loan term - shall mean the period determined by the loan agreement concluded between the bank and the loan beneficiary, which may not be longer than 36 months from the loan availability date, including the grace period of nine to 12 months, except in the case of application of a moratorium and/or other facilities introduced by the regulations of the National Bank of Serbia with a view to mitigating the consequences of COVID-19 pandemics aimed at maintaining stability of the financial system, when the loan repayment period shall be extended by the period determined under such regulations;^*

6) loan availability date - shall be 30 days at the maximum from the loan approval date for the new loans and/or six months from the loan approval date for the renewed loans, and by 31 July 2022 at the latest;

7) maximum loan amount - shall be the amount equalling the lower of the following two amounts:

- a quarter, and/or 25% of the loan beneficiary's income from 2019 according to the financial statements delivered by the loan beneficiary to the Serbian Business Registers Agency for statistical purposes for that year, or

- the amount of EUR 3,000,000 (in writing: three million of Euros and 00/100) - for the loans approved in Euros, and/or the amount equalling the counter value of the amount of 3,000,000 Euros in Dinars calculated by using the official Dinar to Euro middle exchange rate determined by the National Bank of Serbia which is applicable on the loan agreement conclusion date - for the loans approved in Dinars;

8) currency of the loan - shall be Dinar (RSD) or Euro (EUR);

9) guarantee scheme - shall be the economic support measure through guarantee portfolio for mitigating the consequences of the pandemic of COVID-19 illness caused by the SARS-CoV-2 virus in the procedure and as defined by this Law;

10) guarantee - shall mean the portfolio, and/or a set of individual guarantees of the Republic of Serbia, which is unconditional, payable at first call and issued for the benefit of banks as a collateral for the banks' portfolio per beneficiaries' loans;

11) insured portfolio - shall designate at any relevant moment the total agreed loan principal amount which is covered by the guarantee of the Republic of Serbia, where the insured portfolio may under no circumstances exceed the maximum amount of the guarantee of the Republic of Serbia;

12) individual guarantee - shall mean the guarantee which is issued per portfolio of each individual bank, issued per the insured portfolio of each individual bank.