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The efects of global financial crisis on Serbia ( download tekst in PDF )

Project financing via SPV

Project financing is a new service offered by the banks in Serbia in the area of construction works, and represents a type of financing projects of construction of residential facilities, business facilities, residential and business complexes, commercial facilities (large supermarkets, shopping centres, etc.), tourist and industrial capacities (hotels, industrial halls, warehouses, logistical centres, etc.), designated exclusively for further sale or long-term exploitation. Another specificity of this type of financing is reflected in the banks’ request that the key construction stakeholder be a commercial entity founded especially for this purpose, a so-called SPV commercial entity, where special attention must be paid to regulated absolute rights over real estate, restrictions in disposal of city construction land, and unresolved legal irregularities, such as the legal instrument of a protected tenant. In this regard, all potential investors should proceed very carefully in the process of selecting the real estate to be financed.whole text