Amendments to the Business and Financial Plan of the Slovenian Regional Development Fund for 2024 and 2025

At today's meeting of the Committee on the Economy, the Slovenian Government adopted the Amendments to the Business and Financial Plan of the Slovenian Regional Development Fund for 2024 and 2025. The Slovenian Regional Development Fund (SRDF) has drafted these amendments in response to new measures planned for 2024 and 2025. The amendments also address an increase in the 2024 outturn, driven by higher-than-expected demand for the Entrepreneurship (BIZI), Agriculture and Forestry (AGRO), and Local Communities (LOCAL) programmes.

Most of the new measures to be implemented by the SRDF stem from the amendments to the Development Incentives Programme for Border Problem Areas for 2022–2025, along with explanations, adopted by the Slovenian Government on 5 September 2024. The measures are expected to commence immediately after the signing of relevant agreements in late 2024 and early 2025. The planned new financial incentive (loans) and subsidisation measures requiring state budget funding are as follows:

2024

– Development loans for small and medium-sized enterprises (SMEs) in problematic border areas (PBAs) financed by the SRDF own funds, alongside a transfer of appropriated funds from the B-balance of the state budget, amounting to EUR 6 million (SRDF development measures); and

– Loans for investment projects for municipalities in PBAs focused on public infrastructure, financed by the SRDF's own funds, alongside a transfer of appropriated funds from the B-balance of the state budget, amounting to EUR 20 million (SRDF development measures).

2025

– Loans for investment projects for SMEs in PBAs, financed by the SRDF's own funds, alongside a transfer of appropriated funds from the B-balance of the state budget, amounting to EUR 10 million (SRDF development measures);

– Subsidising the initial investment of companies in PBAs under the Recovery and Resilience Plan from the remaining funds, totalling EUR 1.8 million (Implementation of the Recovery and Resilience Plan);

– Encouraging the development of private tourist accommodations with higher added value in PBAs, with funding totalling EUR 1 million from the A-balance of the state budget (Additional measures for problematic areas);

– EUR 1.5 million in subsidies for start-ups in PBAs, funded from the A-balance of the state budget (Additional measures for problematic areas);

– Encouraging the construction of public tourist infrastructure for municipalities in PBAs, with funding totalling up to EUR 3.5 million from the A-balance of the state budget (Additional measures for problematic areas);

– Subsidising the preservation and development of handicraft activities under the programme of the Ministry of the Economy, Tourism and Sport, with funding totalling EUR 1.1 million from the A-balance of the state budget (Preservation and development of handicraft activities).

The new measures are valued at EUR 26.0 million in 2024 and EUR 18.9 million in 2025. Specific transfers of appropriated funds to the SRDF's assets and equity will be determined by the Slovenian Government at a later date, on a case-by-case basis.

Slovenian Regional Development Fund

The SRDF is a public financial institution of the Republic of Slovenia, which has an important effect on promoting coherent regional and rural development. Taking into account the strategic and operational guidelines of the EU and Slovenia in regional development, the SRDF's incentives are implemented through four programmes: Entrepreneurship (BIZI), Agriculture and Forestry (AGRO), Non-Governmental Organisations (NGOs), and Local Communities and Other Public Sector Entities (LOCAL). These programmes also design incentives for projects in areas where the Italian and Hungarian autochthonous national communities reside. The financial incentives awarded through public calls prioritise projects that contribute to a carbon-free economy, support the green transition, promote digital transformation and foster social responsibility. They are aimed at creating a competitive environment for micro, small and medium-sized enterprises, which form the backbone of the economy.

Source: Ministry of Cohesion and Regional Development