Private Briefing May 2025
No. 146 | Year XIII
The final spring edition of Private Briefing in 2025 brings analyses of support measures for women entrepreneurs, farmers, and businesses, presented through several parallel funding lines. The Ministry of Economy’s new support model for women in rural areas covers up to 100 percent of equipment-related investments. The Ministry of Agriculture’s programmes include subsidised loan schemes with commercial banks, offering the potential for critical improvements in agricultural holdings, while the tractor subsidy scheme provides an opportunity for significantly enhancing efficiency and competitiveness. In parallel, the EU, through Interreg VI-A, invites 200 SMEs to strengthen their capacities with a focus on digitalisation and innovation.
Grants for Women Entrepreneurs in Rural Areas
// As part of a broader initiative to support economic competitiveness and development, the Ministry of Economy has launched a new support scheme aimed at women-led businesses in rural areas. The Support Programme for the Development of Women’s Entrepreneurship in Rural Areas in 2025 offers grants to women engaged in entrepreneurial activities in non-urban areas, with a particular focus on the production of food products. Potential beneficiaries include registered sole proprietors, micro companies where a woman is both founder and legal representative, and cooperatives with a majority of female members. An additional eligibility condition is that the applicant must have been registered before the beginning of 2025, operate in a non-urban settlement, and be engaged in food production.
// Grants may be used for the purchase of new equipment intended for the storage, processing, and packaging of agricultural products, as well as for procuring raw materials, which may account for up to 25% of the total investment value. To improve the practical usability of the financial support, costs related to installation, setup, and training may also be eligible, provided they are itemised within the same proforma invoice. Funds cannot be used for the reimbursement of previously purchased or paid equipment, loan repayments, or for the purchase of hand tools, vehicles, or equipment bought from individuals who are not registered entrepreneurs. The total programme budget amounts to RSD 50 million, with grants awarded in full, covering 100% of the investment value stated in the proforma invoice, including VAT. Eligible funding ranges from RSD 300,000 to 500,000 per application. The programme also allows for the purchase of more expensive equipment, provided that the difference above the maximum grant value is covered from the applicant’s own resources.
// Despite the relatively modest funding amounts, the programme’s clearly defined scope offers a meaningful development opportunity for women entrepreneurs in rural areas. Investments in food production processes not only represent a step towards modernisation and increased capacity, but also contribute to improved product quality and safety. Moreover, by enabling the acquisition of contemporary equipment for storage, processing, and packaging, along with essential raw materials for continuous production, the programme enhances competitiveness. Subsidising essential investments through full grant coverage enables the realisation of projects that would otherwise remain out of reach or require significantly longer payback periods to reach profitability and capital accumulation. This, combined with the programme’s clearly defined sectoral and territorial focus, makes it a worthwhile option to recommend.
Ministry of Agriculture: Subsidised Loans for Producers and Processors
// One of the most important support measures introduced by the Ministry of Agriculture, Forestry and Water Management to strengthen the investment capacity of domestic agricultural holdings is the Subsidised Loan Programme for Agricultural Production, implemented in cooperation with commercial banks. During the 92nd International Agricultural Fair in Novi Sad, Poštanska štedionica Bank joined the programme, adding to the existing group of partner banks, which includes Alta Bank, NLB Komercijalna Banka, and Raiffeisen Bank. The inclusion of a new bank further increases access to financing, expanding the network of financial channels through which farmers can obtain favourable loans aimed at modernising and developing agricultural production.
Eligible applicants include individuals who are heads of registered commercial family farms, entrepreneurs, agricultural cooperatives with at least five members listed in the Registry as holders or members of five different farms, and legal entities classified as micro or small enterprises. Applications are submitted directly to participating banks. Especially favourable conditions are provided for young farmers under the age of 40, women, and applicants operating in areas with difficult working conditions. For these groups, the interest rate is reduced to 1%. While the standard interest rate is 3%, a zero-interest rate applies to loans intended for the purchase of fertilisers, making this particular support measure the most favourable to date for that purpose.
The loans cover a wide range of investments that directly enhance the competitiveness and sustainability of agricultural production. This includes the purchase of livestock, animal feed, seeds, mineral fertilisers, planting material, and protective substances, as well as investments in machinery, tractors, irrigation systems, cooling systems, dryers, silos, and other essential equipment. The programme also supports modernisation efforts, which this year includes the procurement of solar panels, precision agriculture technologies, as well as GPS devices and agricultural drones.
Additionally, it enables the purchase of certified second-hand vehicles for beekeeping needs, up to a value of RSD 600,000, and supports improvements in livestock quality through the purchase of breeding heifers and cows up to five years old. In this way, the loan support covers a very broad range of essential inputs across various agricultural sectors, including equipment necessary to boost productivity, efficiency, and resilience of farms.
// The total budget allocation from the Republic of Serbia for loan subsidies amounts to RSD 1.3 billion, which will enable the activation of favourable credit lines for investments in livestock farming, mechanisation, digital tools, and other agricultural segments. The maximum loan amount is RSD 6 million for individuals and entrepreneurs, and up to RSD 18 million for legal entities. Loans are approved in dinars, without a deposit requirement, with a repayment period of up to five years. For the purchase of breeding livestock, a grace period of up to two years is available.
// Given the scope and structure of support, the subsidised loan programme stands out as one of the most comprehensive financial support measures for farmers in 2025. Through clearly defined loan limits, favourable interest rates, and a wide range of eligible investments, the programme enables significant improvements in production capacity, digitalisation, and the transition to more sustainable farming models. Its emphasis on young people, women, and farms in disadvantaged areas contributes to inclusiveness and more balanced regional development. The network of partnering banks further facilitates access to financing, while the transparent procedures and fixed application deadline, set for 15 October, allow for timely planning and implementation of investments. As a crucial element in the planning and preparation phase, we recommend aligning the funding with your broader business strategy, while also considering investment profitability analyses.
Interreg VI-A Bulgaria–Serbia: Six Million Euros for SME Cross-Border Cooperation
// Through the Interreg VI-A Bulgaria–Serbia programme, the European Union has allocated six million euros for indirect support to small and medium-sized enterprises (SMEs) in both countries. The initiative aims to strengthen cross-border business ties and foster regional development. The programme offers a significant opportunity for 200 SMEs, 100 from each country, to enhance their capacities and expand market opportunities through international cooperation. This approach promotes balanced regional development and supports the creation of sustainable business partnerships between Serbian and Bulgarian companies. It forms part of the EU’s broader strategy to strengthen cross-border collaboration and economic integration among neighbouring countries, focusing on sectors with the highest potential for regional development and innovation.
Aligned with this strategic direction, the programme concentrates on four main sectors: tourism, innovation, digitalisation, and sustainable growth. This reflects the EU’s recognition that these sectors have the potential to drive economic integration and competitiveness in the region. Notably, the programme does not require direct partnerships between companies from the two countries. Instead, it enables indirect support, making it accessible even to SMEs without established cross-border contacts. The six-million-euro budget allows for substantial support per beneficiary, covering a wide range of activities, from developing new products and services to digitalising business operations and implementing sustainable practices. The programme places particular emphasis on projects that contribute to the green and digital transition, in line with the EU’s strategic priorities for the 2021–2027 period.
Tourism stands out as a natural area for collaboration between the two countries, which share a rich cultural heritage and complementary tourism potential. Within the programme, SMEs can jointly develop tourism products, improve digital platforms for destination promotion, and implement sustainable tourism practices. Such cooperation supports the creation of regional tourism routes that can attract more visitors and extend the tourist season. In the area of innovation, SMEs can access new technologies, knowledge, and markets through cross-border partnerships. The programme supports the development of innovative products and services through the exchange of expertise between Serbian and Bulgarian companies, potentially leading to new business models and greater competitiveness in regional and European markets. Digitalisation is a crucial factor in the modernisation of the SME sector in both countries. This is especially relevant
for smaller enterprises that often lack the resources to undertake digital transformation independently. The focus on sustainable growth reflects the priorities of the EU Green Deal and enables SMEs to develop environmentally responsible business practices through cross-border cooperation. The programme supports projects that contribute to the circular economy, energy efficiency, and carbon footprint reduction, increasingly important factors for competitiveness on the European market. SMEs implementing sustainable practices and ESG standards not only contribute to environmental protection but also enhance their position in markets where ecological standards are becoming a key decision-making factor for consumers and business partners. The programme allows companies to implement digital solutions through joint projects, develop e-commerce platforms, and enhance their digital skills.
// Through such initiatives, the EU provides not only financial support but also encourages the development of long-term business ties that can endure beyond the programme’s completion. From the beneficiary’s perspective, the programme offers substantial support, with an average grant amount of as much as 30,000 euros, which can be used for a wide range of activities, including product development, marketing, employee training, equipment procurement, and technology implementation. Its flexibility allows beneficiaries to tailor the support to the specific needs of their projects. For domestic SMEs, this programme represents an opportunity to access the EU market through cooperation with Bulgarian partners, which can be a meaningful step towards greater business internationalisation. At the same time, participation in EU programmes offers valuable experience with European standards and procedures, which is beneficial for future business endeavours.
Ministry of Agriculture: Tractor Subsidies Continue in 2025
// Earlier this month, the Ministry of Agriculture, Forestry and Water Management launched its 2025 programme supporting the purchase of new tractors, aimed at modernising farm machinery and improving efficiency in primary crop and livestock production. This initiative is part of the Ministry’s broader strategic plan, which includes a total investment of one billion dinars this year to support machinery upgrades and strengthen production systems across Serbia.
Eligible applicants include registered and active individuals who are heads of commercial family farms, as well as entrepreneurs, companies, agricultural cooperatives with at least five members, secondary schools, and religious communities. The subsidy applies exclusively to the purchase of new tractors with engine power up to 60 kilowatts, produced or assembled in the Republic of Serbia, and intended for use in core agricultural activities in crop or livestock production. The programme clearly states that it does not cover used or refurbished tractors, nor purchases through leasing, assignments, compensation, or other mechanisms involving mutual claim settlement. Additionally, the subsidy does not cover VAT, customs and import duties, banking fees,
insurance, registration, extended warranties, spare parts, or transport and delivery costs. Support is strictly intended for direct purchases of tractors that meet all technical and legal criteria, ensuring full transparency and purposeful use of funds, as well as guaranteeing that the subsidised equipment genuinely contributes to improved agricultural production. The programme’s budget amounts to 500 million dinars, with individual applicants eligible for a subsidy of up to one million dinars per calendar year, covering up to 50% of the tractor’s value. The exact subsidy amount is calculated as a percentage of the realised eligible investment, excluding VAT, in line with the law regulating agricultural and rural development incentives, as well as relevant by-laws.
// This long-standing and now standard programme remains an important step toward strengthening the competitiveness of domestic agriculture. It provides concrete opportunities to upgrade production capacity through the acquisition of modern machinery. Beyond core primary production, improved efficiency creates the conditions for further diversification of income streams and a reduction of risks linked to climate and market fluctuations. Higher levels of processing significantly increase margins and profitability, resulting in faster and more substantial accumulation. At the same time, the price of final products is not as exposed to volatility as is the case with primary production. Diversifying income sources through additional services helps extend the season, expand the product range, and significantly improve capacity utilisation.
| KEY ECONOMIC INDICATORS | May - 25 | |
|---|---|---|
| 1 | Annual inflation | 4.00% |
| 2 | Reference interest rate | 5.75% |
| 3 | Unemployment rate | 8.60% |
| 4 | Average net salary - RSD | 108,013 |
| 5 | Average pension - RSD | 50,688 |
| 6 | Exchange rate RSD/EUR | |
| On the last day of the month | 117.1924 | |
| Average exchange rate for the month | 117.2029 | |
| 7 | Exchange rate RSD/USD | |
| On the last day of the month | 103.0353 | |
| Average exchange rate for the month | 104.6381 | |
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