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The Government of the Republic of Serbia

In the service of citizens

Protocol of German assistance to Serbia in 2005 signed

Belgrade, 14 April 2005

Serbian Minister of International Economic Relations Milan Parivodic and the regional coordinator for German bilateral assistance in the Balkans, Dominik Ziller, signed today a protocol on Germany’s developmental aid to Serbia totalling €35 million.

Parivodic told a press conference following the signing ceremony that Germany’s developmental assistance will amount to €27.3 million plus €7 million from the German agency KfW, which will be distributed based on a prior assessment of the needs across the region.

According to him, loans for developmental projects are one of the primary financial instruments in this year’s assistance package, adding that the projects will be carried out by public and private institutions and enterprises.

Parivodic also said that full cooperation with the Hague tribunal is one of the basic elements determining the volume of financial assistance.

Germany has so far helped Serbia with a total of €362 million, said Parivodic and added that this year’s aid will be used for the creation of a deposit insurance fund, water supply system rehabilitation, support to the economy, and creation of new jobs.

Funds will also be used to support reforms in the tax system and economic legislation as well as for municipal and youth projects, according to Parivodic.

He added that German representatives also agreed to provide financial assistance to Serbia’s energy sector, in terms of improving energy efficiency and creating renewable energy sources, and to continue existing cooperation in the fields of water supply and district heating.

Parivodic said that Germany is one of Serbia’s largest donors and he thanked the German government and the people on the assistance they are giving to Serbia.

German Ambassador in Belgrade Andreas Zobel said that Germany will remain Serbia-Montenegro’s strategic partner on the road to the European Union.

He explained that the main objective of Germany’s engagement in Serbia is to improve living conditions of citizens and to create a framework for successful economic development and EU integration.

Zobel noted that Serbia has made significant progress in cooperation with the Hague tribunal and that most of the credit for getting a positive feasibility study goes to Prime Minister Vojislav Kostunica, whose decisions have created conditions for the favourable feasibility report. He added that credit also goes to Deputy Prime Minister Miroljub Labus and President Boris Tadic.

The ambassador also welcomed the recent agreement on the functioning of the State Union of Serbia and Montenegro as well as the cooperation between the international institutions and Serbia’s authorities and opposition in addressing the problem of Kosovo-Metohija.