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The Government of the Republic of Serbia

In the service of citizens

Government to invest €150 million in construction of flats

Belgrade, 28 August 2006

Serbian Minister of Finance Mladjan Dinkic said today that the Serbian government will invest €150 million from National Investment Plan funds in the construction of 3,655 flats in 23 cities of Serbia, intended for those employed in public administration and civil service.

Author: Beta

Speaking at a press conference where a sectoral investment plan adopted for the field of housing was presented, Dinkic said that flats will be offered to civil servants on favourable terms, and prices will be from €300 to €850 per square yard, depending on the city.

He specified that some 300,000 persons in Serbia employed in civil service and the public sector will be able to apply for a flat to be paid for in installments over a period of 20 years, at an annual interest rate of 0.5% with a 20% contribution.

The first installment and contribution will be payable after moving in, and it is planned that all flats be finished by the end of 2007, said the Minister, and added that the competition for applying for these flats will be announced in autumn.

The condition for applying is that the applicant does not possess a flat, and after buying the flat will not sell or rent it during the next five years. The applicant will also be obliged to continue working in public administration or civil service for a minimum of further five years, explained Dinkic.

According to Dinkic, it is envisaged that flats are distributed according to the number of employees in a particular sector, so that the health and education sector will be assigned 30% of flats, the Ministry of Interior 15%, the Ministry of Defence 10%, employees in other organs of public administration get 9%, judiciary five percent and cultural institutions 1%.

Dinkic said that by the end of the year 330 flats will be sold, which were constructed earlier by the Serbian Construction Directorate and which the Serbian government will sell at a discount.

He pointed to the fact that money from the sale of flats will go to a special fund of the Serbian government for construction of housing facilities, with which construction of new flats will begin, and priority will be given to less developed municipalities.

According to the sectoral investment plan some 2000 flats will be constructed in Belgrade, 410 in Novi Sad, 392 in Nis, 65 in Kikinda, 10 in Ruma, 50 in Leskovac, 17 in Medvedja, 56 in Vranje and the rest in 15 other cities of Serbia.

Dinkic added that €5 million from the total funds of the sectoral investment plan for housing are meant for reconstruction of façades of institutions and cultural monuments, such as the Serbian Academy of Sciences and Arts, assembly buildings in Kragujevac and Nis and eight other institutions.

Serbian Minister of Capital Investments Velimir Ilic recalled that the government financed the construction of 700 flats in seven municipalities this year, intended for refugees, persons with disabilities and socially disadvantaged persons, while 1000 flats were built after destruction caused by floods and landslides.