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The Government of the Republic of Serbia

In the service of citizens

Serbian government to review 80 sell-off deals

Belgrade, 26 April 2004

Serbian Minister of Economy Dragan Marsicanin said today that reforms will help improve the business environment, strengthen the economy, raise employment and increase living standards.

Serbian government to review 80 sell-off deals

Reforms will be fair and will aim to define Serbia’s business climate and create an efficient economic system, the Minister added.

Addressing a press conference to present the Ministry’s plans in the forthcoming period, Marsicanin said that the government will review around 80 disputed sales from the previous three-year period.

In cooperation with the Anti-Corruption Council and the Serbian Privatisation Agency, the government will review the sales of Zdravlje from Leskovac, Jugoremedija from Zrenjanin, Delises from Vladicin Han, Nis from Nis, Hempro and Putnik from Belgrade, as well as the privatisation of sugar plants from Kovacica, Bac, Pecinci and Crvenka. Sell-off agreements will be cancelled and criminal charges brought against all responsible parties if allegations of corruption prove true, the Minister said.

Stressing that he inherited a ministry that was not engaged in improving the business environment and which was degraded to the point that it became a back-up service of the Privatisation Agency, Marsicanin announced major organisational and personnel changes in the Ministry.

In the past two months, the Ministry submitted draft laws on bankruptcy and corporate registration for government approval, Marsicanin went on to say, adding that the state will not embark on the sale of nationalised property.

The Ministry has focused on raising employment and growth in underdeveloped areas and has reduced interest rates on loans and in what marked the start of a new policy on financing small and medium-sized enterprises and small businesses, said Marsicanin.

Soft loans with one-year repayment period are expected to help open 20,000 jobs in the country, he explained, adding that SMEs and small businesses from Kosovo-Metohija will also be eligible to receive lending.

The Ministry will also launch a new policy on subsidising socially-owned companies, Marsicanin went on to say, noting that annual interest rates will be reduced from seven percent to one percent.

The government is discussing options to invest in the Bor mining complex and utilize production capacity of Vranje-based furniture maker Simpo, he said, adding that the two companies are vital for southern Serbia.

According to Privatisation Agency Director Branko Pavlovic, the Agency is due to reach an agreement with representatives of trade unions in public and socially-owned companies on their participation in restructuring.

Public and socially-owned companies will set up restructuring teams which will comprise members of the Agency, company management and trade unions, Pavlovic explained.

The Anti-Corruption Council will focus on monitoring both privatisation and post-privatisation procedures, said Council President Verica Barac. The Council will continue to cooperate with the government, its ministries and the Privatisation Agency, and will provide its suggestions and analyses, Barac added.