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Press Release

11.12.17

Government using EU funds to promote sustainable economic growth and development

Further to the funding agreement signed by the Ministry of Economic Development and Technology and SID Banka at the end of November 2017, under which a first Fund of Funds totalling EUR 253 million for the period 2014–2020 was established in Slovenia, to be managed by SID Banka, a first disbursement of European cohesion funding in the amount of EUR 63.25 million has already taken place. In this way the Government of the Republic of Slovenia is promoting the use of EU funding and at the same time providing new reimbursable incentives for financing sustainable economic growth and development.

With the first transfer to the Fund of Funds, an important step has been taken towards ensuring the basic conditions of operation of the Fund of Funds and, as regards incentive financing, a transition from grants to reimbursable grants. This is also an important step towards promoting the use of European funding in Slovenia in this financial perspective. 

 

Financial instruments will be developed in four areas: research, development and innovation; small and medium-sized enterprises; energy efficiency; and urban development. SID Banka will prepare concrete conditions for financial instruments in the form of loans, guarantees and (quasi) equity financing in the first half of 2018, when in accordance with the prescribed procedures it will also carry out a selection of financial intermediaries (banks, public funds and other possible financial intermediaries). These will provide the envisaged funds to the final recipients. 

 

The advantages or benefits of the financial instruments for final recipients will be reflected in longer maturities, lower interest rates, lower credit insurance requirements, lower costs and the possibility of deferring repayment of the principal.

 

In this way the functioning of the existing system in Slovenia for the sustainable financing of economic development is also enhanced.


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