Private Briefing August 2025
No. 149 | Year XIII
In anticipation of the always hectic final quarter, preparations are already under way to ensure that entrepreneurs and farmers enter the year’s closing stage ready.
In this respect, the August edition of the Private Briefing brings analyses of instruments for immediate application as well as for strategic undertakings. The focus is on the third part of the trilogy on the green transition, with particular emphasis on integrated EU instruments.
We address the challenges of a shortage of qualified labour through the Regional Challenge Fund, a programme that links dual education with the business sector.
Also featured are long-term loans from the Vojvodina Development Fund, as well as grants from the Provincial Secretariat for Economy and Tourism for women’s entrepreneurship, aimed at digitalisation and innovation.
DFV: Long-term loans for permanent working capital
// The Development Fund of Vojvodina has launched a call for long-term loans for financing permanent working capital for micro, small and medium-sized enterprises and entrepreneurs headquartered in the AP Vojvodina. The credit line provides amounts from 500.000 to 50 million dinars, depending on the creditworthiness of the applicant, with a tenor of up to 48 months and the possibility of using a grace period of up to six months. Loans are approved without processing fees, and borrowers are offered favourable interest rates in dinars or with a foreign currency clause, with additional reductions for arrangements secured by a commercial bank guarantee. Interest rates depend on the currency and location of the borrower, ranging from six-month EURIBOR +2% for loans with a currency clause, to BELIBOR +0.50% to +0.80% for dinar loans, with an additional 1% reduction for loans secured by a commercial bank guarantee. Repayments can be organised on a monthly, quarterly or semi-annual basis, which allows the arrangement to be adapted to the specificities of the borrower’s operations, particularly in sectors with pronounced seasonal cycles or longer payback periods.
// Permanent working capital represents an important segment of financing as it ensures the continuous functioning of business processes, beyond short-term liquidity needs. Unlike short-term loans, which serve to bridge temporary cash gaps or delays between payments and receivables, permanent working capital enables stable financing of raw materials, inventories, inputs and regular operating expenses over a longer period. This allows companies to plan and expand capacity without constantly relying on short-term loans or other expensive sources of financing. For producers and exporters, this line provides certainty that production and delivery costs can be covered months before receivables are collected, while for agribusinesses it enables financing of the entire production cycle, from sowing to harvest, without interruptions or risks to ongoing obligations. In addition, secured permanent working capital provides a stable basis for new employment, as a reliable source of liquidity facilitates entry into new business.
// Access to long-term loans for working capital thus takes a prominent place in financing SME development. Although investments in equipment and technology, quite rightly, are usually in the spotlight, particularly given the constant financing gap for fixed assets, which according to our recent analysis stands at around 25 billion euros, the security of day-to-day operations also constitutes one of the pillars on which growth is built. This programme for permanent working capital has been designed precisely to respond to that need and to ensure that businesses in the province have a stable and reliable anchor for their long-term operations, making it one of the best-calibrated programmes tailored to the real needs of SMEs and agribusinesses.
EU Sustainable Development Instruments Episode III: Integrated Transformation
// After direct programmes aimed at micro, small and medium-sized enterprises, and advanced support models for more demanding sectors, the third part of the green transition trilogy looks at instruments that do not target individual users alone but build an overall framework for sustainable development. These are so-called integrated programmes that combine financial support, technical assistance and regulatory incentives. Their essence lies in creating a stable market for green projects, so that private companies, farms and entrepreneurs can invest in new technologies without taking on excessive risk.
InvestEU is a framework with more than 370 billion euros in guarantees. Although it may appear distant from domestic firms, its impact is already visible – commercial banks and funds operating in the region use these guarantees to offer more favourable green loans, energy efficiency loans for agriculture or longer-term sources for equipment purchases. For farmers, this means that a favourable loan for the purchase of an energy-efficient dryer or irrigation system is in fact indirectly backed by InvestEU.
The Innovation Fund and Horizon provide opportunities for those with the capacity to enter development projects, particularly in partnership with research institutions. Although they may appear reserved for large companies, in practice smaller firms can also join consortia and access grants for pilot plants, new materials or circular business models. In agriculture, for example, this could mean participating in the development of biogas or using waste for energy production.
A specific framework is also made up of instruments linked to the European Emissions Trading System (EU ETS) and the new CBAM mechanism. Although a small producer has no obligation to purchase emission credits directly, the fact that its customers – exporters to the EU – are subject to new rules means that the entire value chain will be driven towards reducing emissions. For domestic firms this practically means that investments in more efficient machinery, renewable energy or improved packaging will not be just a cost, but a condition for remaining part of the market. In this field, more and more grants and blended finance packages are becoming available, precisely in order to help MSMEs, entrepreneurs, farmers and agribusinesses, as well as the economy as a whole and even the public sector, to adapt
// What all these instruments have in common is the way of accessing them. It is rarely possible for a micro or small company to apply directly in Brussels. The route is almost always indirect – through domestic and international banks that use European guarantees, through development funds that launch public calls, or through partnerships within projects. That is why it is important for entrepreneurs and farmers to actively follow local financial and development institutions, as these are the ones that “translate” complex European instruments into practical tools available on the market, such as loans, grants, technical support, training and so forth. For thirteen years, the Private Briefing has been tracking these programmes and explaining how they translate into practical opportunities in the regional market. In the coming period, we expect a significant expansion in both the scope and diversity of programmes under the green agenda, with numerous practical applications ranging from energy efficiency, renewable energy and environmental protection to the social aspects of the green agenda. In this sense, the current trilogy is not the end of the story but merely the foundation for the future framework of business, finance and development.
// The third part of the trilogy shows the broader logic: the green transition is no longer about individual projects but about a systemic shift in which MSMEs and farmers have a dual role. On the one hand, they are the final beneficiaries of financial instruments that enable modernisation of the entire economy. On the other hand, their ability to adapt to new requirements will determine whether they remain competitive on the European market. This is why understanding these integrated instruments is key to planning future investments. Through our analyses in the Private Briefing we will therefore continue to examine the essential elements and potential effects of support programmes, while at the same time standing ready to assist in developing and managing specific projects, and are already working on the preparation of revolutionary solutions for a wider front of users.
RCF: Support for Business - Education Partnership for Sustainable Growth
// The Regional Challenge Fund (RCF) is an initiative linking educational institutions and businesses across the six Western Balkan economies. Established with the support of KfW and the Government of Switzerland, the programme finances vocational education that directly responds to labour market needs. So far, more than ninety projects have received over 40 million euros to strengthen schools, modernise equipment and improve training in cooperation with businesses. Over the coming period, total support is expected to exceed 65 million euros, funding around 140 projects and creating over 4.000 training places for young people across the region. In this way, the Fund is positioning itself as a key development instrument that connects the needs of businesses with education systems and strengthens human capital in the long term. The programme is built around consortia of schools, universities and companies, designed to advance dual and cooperative education models and to develop a workforce aligned with market needs. Consortia can receive grants ranging from EUR 150.000 to 500.000, with joint responsibility for planning and delivering training, as well as integrating students into real working environments. This approach not only better prepares young people, but also gives companies an active role in shaping their future workforce.
Support covers infrastructure investments in workshops and equipment for practical training, teacher and instructor development, and advisory activities during project implementation. Particular emphasis is placed on priorities such as the green transition, digitalisation and gender equality, thereby contributing to broader social development and alignment with European standards. The model provides a strong framework that enables schools and businesses to work together on goals that go beyond individual interests and contribute to the long-term development of society.
For companies, participation means access to a workforce that acquires practical skills and hands-on experience on the equipment and technologies they use in everyday operations. This reduces training and hiring costs, makes workforce planning easier and enhances the company’s reputation as a socially responsible and innovative partner. In the long run, such cooperation leads to higher productivity, greater competitiveness and faster adaptation to technological change. For many firms, particularly SMEs, involvement in these projects
secures access to qualified staff, often decisive for sustainable growth. Educational institutions, on the other hand, can modernise teaching, upgrade infrastructure and build a stronger reputation as credible partners for industry. Their visibility and attractiveness to local communities increase, which in turn draws greater interest from students. Teachers and instructors also gain new pedagogical and technical skills in line with industry needs, turning schools into dynamic learning centres that follow modern trends and labour market requirements.
// Now in its fourth iteration, the RCF has established itself as a strategically important instrument enabling systemic cooperation between education and business, ensuring a sustainable supply of key resources for the economy and providing the foundations for competitiveness, growth and development. From the many programmes we design and deliver, we see that companies are ready to invest in strengthening and diversifying one of the scarcest resources – skilled people. Yet alongside this readiness, support is essential. Our training programmes have shown us that businesses see workforce development across a wide range of skills and competences as a precondition for sustainability. In this context, the RCF provides a framework for combining the efforts of companies and educational institutions to secure a competitive workforce for the long term. For Serbia, which has already received EUR 11,24 million for 27 projects and emerged as a regional leader, the RCF is a concrete investment in the future – one that will shape the competitiveness of the domestic economy for decades to come. Applying requires careful preparation: building a consortium, aligning the interests of schools and businesses, jointly planning activities and training, and preparing complete documentation. Starting early is therefore essential, both to meet programme standards and expectations and to increase the chances of a successful application and high-quality implementation
Women’s Entrepreneurship: Grants for digitalisation and innovation
// Support for women’s entrepreneurship in Vojvodina has long been an important part of development policy, and this year’s programme of the Provincial Secretariat for Economy and Tourism brings a particular focus on innovation and digitalisation. A total of 25 million dinars in grants has been set aside for women entrepreneurs and companies in which women hold at least half of the ownership and run the business. The idea is that the transition towards a more modern way of doing business can be accelerated and competitiveness increased through targeted investments.
Eligible applicants include micro, small and medium-sized enterprises, as well as sole proprietors registered in Vojvodina. Support is provided in the form of reimbursement for purchases already made, which means beneficiaries can decide for themselves what they need most, with the funds refunded afterwards. The programme covers four categories: machinery and equipment, computer equipment, software and services.
Grants range from 40.000 to 600.000 dinars, depending on the type of investment, and can cover up to 90% of the cost. This ensures that smaller investments, such as buying a computer or developing a website, are supported, while more substantial investments in production equipment are made significantly easier.
// The real value of this programme lies in its focus on digitalisation and process innovation. Purchasing computers and software is no longer a luxury but a necessity for any company that wants to remain competitive. Women entrepreneurs can now invest in specialised programmes, communication tools, record keeping or promotional activities, with up to 90% of their costs refunded. The category of services is even broader, covering website development, marketing strategies, digital campaigns or the certification of quality standards. These are often challenging for smaller businesses, requiring specialist expertise or external consultants. The programme is designed to bridge that gap and enable companies to professionalise their operations. At the same time, investing in new machinery means lower labour costs, faster processes and higher quality products. Combined with digital marketing and certification, this creates a complete framework for business growth. This is particularly important for women entrepreneurs in competitive sectors, from food production and services to small workshops and retail.
// Although modest in scale compared to large national or EU funds, the programme makes up for this with its targeted approach. It directly addresses the barriers most commonly faced by women entrepreneurs: lack of resources for basic equipment, difficulties with digital presence, and limited access to expert services. By investing in these areas, the programme enables even small companies to make a qualitative leap and gain the opportunity to enter wider markets. Grants for digitalisation and innovation are therefore a practical and measurable way of providing support, contributing tangibly to the broader advancement of women’s entrepreneurship.
| KEY ECONOMIC INDICATORS | Aug - 25 | |
|---|---|---|
| 1 | Annual inflation | 4.90% |
| 2 | Reference interest rate | 5.75% |
| 3 | Unemployment rate | 8.50% |
| 4 | Average net salary - RSD | 107,075 |
| 5 | Average pension - RSD | 50,662 |
| 6 | Exchange rate RSD/EUR | |
| On the last day of the month | 117.1734 | |
| Average exchange rate for the month | 117.1754 | |
| 7 | Exchange rate RSD/USD | |
| On the last day of the month | 102.4512 | |
| Average exchange rate for the month | 100.1938 | |
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