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The Government of the Republic of Serbia

In the service of citizens

Assistance to Serbian firms and the young in Kosovo necessary

Leposavic, 27 June 2006

Head of the Economic Team for Kosovo-Metohija and southern Serbia Nenad Popovic said today during a visit to Leposavic that conditions must be created for providing assistance to Serbian firms in Kosovo, as well as to the young so that they can live from their own work.

Following a visit to factories Lola near Leposavic, Prva Petoletka, and Hrast, Popovic said that all three factories have good infrastructure, warehouses and personnel, but that difficult conditions for doing business in Kosovo threaten to open the problem of migration.

He pointed out that Lola factory is one of the few Serbian companies in Kosovo that does business successfully, adding that it exports 50% of its production and has a turnover of several million euros. The other two companies, however, have huge debts and poor production.

These companies operate in very difficult financial and tax conditions because when exporting to Serbia they pay non refundable double tax , Popovic said and promised that the Economic team, in cooperation with the Serbian Ministry of Finance, will try to tackle those problems.

During the day, Popovic and his associates will visit Gracanica too, where they will open the first office of the Economic team in Kosovo, after which they will also visit the Zubin Potok municipality, dams at Gazivode Lake and Simpo factory in Zubin Potok.

The head of the Economic team will wrap up his visit to Kosovo-Metohija with a visit to Gracanica and Gazimestan on the occasion of the traditional celebration of St Vitus' day.