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German KfW Lends Serbia $130 Million for Farmers, Municipalities

German development bank Kreditanstalt Fuer Wiederaufbau, or KfW, lent Serbia 100 million euros ($130.4 million) to finance its agriculture, energy efficiency, municipal infrastructure and renewable energy.

The funds will be channeled through three Serbian banks with clients benefiting from seven-year loans, including a two-year grace period, central bank governor Jorgovanka Tabakovic told reporters in Belgrade today, adding that Narodna Banka Srbije will control the cost of borrowing of ultimate clients.

Komercijalna Banka AD will distribute 30 million euros worth of loans to farmers and food makers and 25 million euros to municipalities to repair local water-supply and sewerage systems and upgrade roads, power grids or heating at schools and hospitals. ProCredit Bank AD will on-lend 40 million euros to food makers and farmers for new machinery, cattle, and investment in organic foods, while Cacanska Banka AD will have 5 million euros for energy efficiency and renewable energy.

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