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The Government of the Republic of Serbia

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State has a plan to address issues of several important companies

Belgrade, 14 August 2019

Prime Minister Ana Brnabic said today that the state has a plan to find strategic partners for companies that have burdened the state budget for years, as it has done in cases of RTB Bor, Smederevo ironworks and agricultural company PKB.

Brnabic said in an interview with the Tanjug news agency that the state also has a plan for the Resavica Public Underground Coal Mining Company, whose four mines, upon recommendations of the International Monetary Fund (IMF), should be closed.

Speaking about the plans of the state to resolve the issues of several important companies, she also mentioned that HIP Azotara Pancevo, which went bankrupt, is looking for a strategic partner, while the Kikinda methanol-vinegar complex has managed to recover and is now operating positively .

When it comes to HIP-Petrohemija, the state is looking for a partner, she said, adding that there are interested parties, but so far the offers are not in line with the state's expectations.

HIP-Petrohemija and MSK are no longer a burden on the budget, and both companies are stable, cover their expenditures and operate steadily, Brnabic said.

In addition to resolving the issues of individual companies, a priority of the government is the allocation of more money for infrastructure, which should enable the budget for the coming year, she said.

Asked by reporters whether the ministries have already submitted their budget proposals for 2020 and whether the state coffers would be increased next year, she explained that the deadline is 1 September.

The decision to increase the budget will also depend on the economic growth this year, the Prime Minister said, expressing confidence that the projected growth of 3.5% will be achieved.

State has a plan to address issues of several important companies

Author: Tanjug

Brnabic announced that the government will endeavour to present the budget to the public before adoption in the Assembly, in order to inform citizens about the priorities for 2020.

At the moment, she recalled, major infrastructure projects have already been launched in Serbia that require serious financing, which will partly come from the 2020 budget.

Construction of the Morava corridor is soon underway, then the third and last section of the construction of the fast railway from Novi Sad to Kelebija, next year construction of the Fruska Gora corridor and the Ruma-Sabac-Loznica expressway begins, while the works on sections Sremska Raca – Kuzmin and Tutin - Novi Pazar are expected in September, she specified.

This is followed by investments under the €1 billion project in the health care system, Brnabic announced, explaining that part of those funds will be allocated from the growth of the Serbian economy and budget, and partly from loans.

The Prime Minister expressed her expectation that Serbia would advance to the World Bank's "Doing Business List" this year, saying that it is not unattainable for us to be ranked among the top 30 countries on that list.