“DDOR Novi Sad” company, as well as 5 other insurance companies, signed the agreement with Ministry of Agriculture, Trade, Forestry and Water Management on subsidizing 100 percent of premium to farmers who take a livestock loan. The funds for this agreement will be set aside from the state budget.
On the press conference in the Serbian Government, responsible Minister Dušan Petrović announced that 400 million Dinars have been provided in that purpose. Also, he outlined that there will be enough money in the budget to subsidy interest rates as well as insurance premiums.
In mid-March, the contracts with banks on subsidized Dinar loans for agriculture in 2012 have been signed. The interest rate is six percent and a grace period of one year, but insurance of premium is a necessary condition to realize the bank loans for purchase and fattening of cattle.
With these contracts with insurance companies, the Serbian Government supports the implementation of the Decree on stimulating the agricultural production through credit support, and by subsidizing a part of the interest rates in 2012.
The Minister Petrović said that these measures are aiming to improve livestock breeding in Serbia and export of agricultural products, that was last year in the amount of 2,7 billion Dollars.
The representatives of insurance companies have expressed their satisfaction over the fact that they were participating in this program of Serbian Government, outlining that the contracts are great initiative in order to improve development of Serbian agriculture, which is the base of Serbian economy.