On a press conference held on October 17 in Hyatt Hotel in Belgrade, MK Group and German Association for Economic Cooperation (DEG) signed a contract by which MK Group gets a long-term loan of 50 million euros.
German Association for Economic Cooperation (DEG) provides MK Group with a long-term loan of 50 million euros. Co-financers are the development finance institutions FMO (Netherlands) and OeEB (Austria), each providing 15 million euros. Credit is provided on a period of 10 years, and the funds will be used to reduce production costs. This new technology is expected to reduce energy costs by around one-fifth per tonne of sugar. Furthermore, the loan will be used to invest in a steam dryer that dries wet pulp, a by-product of sugar production, to manufacture pellets. Kostic added that the funds will be used for modernization of existing and purchase of new irrigation system, thereby extending the MK Group’s irrigation surface to 5,000 ha. The remaining funds will be available for the construction of a network of silos, warehouses and purchasing stations in Vojvodina.
