Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Government's priority to create conditions for economic development and employment growth

Belgrade, 27 June 2005

Serbian Prime Minister Vojislav Kostunica called on the most successful businessmen to join the Serbian government and local self-governments in the implementation of the Serbian government's programme for encouraging employment and reviving the economy in Kragujevac, Bor and Vranje and thus contribute to strengthening companies and Serbia's economic development. The Prime Minister today held a working meeting with many of Serbia’s most successful businessmen and several ministers responsible for economic development.

Presenting the programme, Kostunica said that this project was prepared for the municipalities of Kragujevac, Bor and Vranje, but could also be used as a model for other municipalities and cities in Serbia that want to attract domestic and foreign investors, in turn making Serbia competitive among other countries aiming to lure as many investors as possible.

Stressing that one of the government's priorities is to secure conditions for development of the economy and employment growth, Kostunica said that new investment, creation of new jobs and increase of production and exports are necessary for further strengthening of the country's stability, its inclusion into European integrations and a better living standard for its citizens.

The Prime Minister explained that the government chose Kragujevac, Bor and Vranje because of the very high level of unemployment in these cities and at their largest companies, which have been collapsing for years. However, he stressed that their strategic positions are good and that the government, in its aim to advance development evenly throughout the country, wants to assist it in these three parts of Serbia.

Kostunica said that the programme will be realised through the Serbian Development Fund, with additional participation of local self governments, and that the long term aim of the government and development fund’s activity is to offer long-term crediting to projects in the fields of industry, processing capacities in agriculture and services sector in Kragujevac, Bor and Vranje.

These funds will be used for the creation and development of small, medium-sized and large enterprises, as well as for new profitable projects, reconstruction and modernisation of the existing companies.

The priority in the use of funds approved under this programme will be given to projects that include creation of new jobs, that can generate great profits and quick return on investment, and that are export-oriented.

The Prime Minister said that this programme does not include the primary agricultural production and infrastructure as separate funds have already been created for these purposes. Also, the loans from this programme are not envisaged for commerce since the revival of production is the priority.

The Serbian government is providing substantial funds for these purposes, while the Serbian Development Fund is implementing the programme and approving loans without banking guarantees, with a five-year repayment period, a 0.5 percent annual inflation rate and one-year grace period, Kostunica said. He added that local self-governments will provide free building land as well as free and quick issue of building licences.

Kostunica said that the Serbian government will do its level best to make Serbia an attractive regional destination for investment and provide decent and well-paid jobs for its citizens.

Minister of Finance Mladjan Dinkic said that representatives of local self-governments are committed to providing the free use of building land, infrastructure capacities and the quick issue of all necessary documentation for the investors.

The only condition for receiving loans is that at least 70 percent of the total number of new employees come from the rolls of unemployed persons registered at employment services in Kragujevac, Bor and Vranje, Dinkic said. He added that preference in loan assignments will be given to those entrepreneurs who invest portion of the capital to realise these projects.

Dinkic said that the amount of loans to be approved will depend on the number of new jobs that will be opened. Thus, companies opening up to 24 new positions will receive loans of up to 15 million dinars, whereas there is no limit on the loans for companies opening more than 100 jobs.

Minister of Economy Predrag Bubalo said that the government wants to support Serbia's development and added that this programme is not the only one that has been used to boost the economy.

Bubalo said that the Serbian government has approved 420 loans for entrepreneurial and development projects since 2001, with a total value of 1.2 billion dinars.

Apart from the fifty most successful businessmen from Serbia and the ministers of Finance and Economy, the working meeting was attended by Minister of Labour, Employment, and Social Policy Slobodan Lalovic, Minister of International Economic Relations Milan Parivodic, Minister of Capital Investment Velimir Ilic, National Bank of Serbia Governor Radovan Jelasic, as well as representatives of the Development Fund and leaders of the local self-governments of Kragujevac, Bor and Vranje.