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The Government of the Republic of Serbia

In the service of citizens

French businesspeople interested in investing in Serbia

Belgrade/Paris, 13 December 2006

Serbian Minister of International Economic Relations Milan Parivodic talked today in Paris with representatives of the French Agency for International Business Development Ubifrance, and representatives of French companies interested in investing in Serbia.

At a press conference Parivodic said that he met with Ubifrance President Rene Andre, representatives of the French Ministry of Foreign Affairs, Head of the French embassy in Belgrade's Economic Department Pierre Coste, French businesspeople and Serbian and French ambassadors. The meeting concerned the business climate in Serbia, new laws and privatisation, as well as French companies in Serbia.

Parivodic stressed that companies Gaz de France and Veolia Water are interested in investing in Serbia, adding that the latter has even drafted a project to process sewage water in Krusevac. Furthermore, a freight vehicle company has also stated it would like to open a factory in Serbia.

According to Parivodic, French businessmen are interested in buying the insurance company DDOR from Novi Sad, as well as in investing in the electric energy distribution system and communications.

Parivodic told the press conference that this year's foreign direct investment in Serbia reached $4 billion, adding that according to the World Bank, Serbia holds the top position among 155 countries regarding the implementation of reforms, which was also confirmed by the European Bank for Reconstruction and Development.

The Minister pointed to the fact that the Serbian government has set aside €1.6 million for large infrastructure projects.

Parivodic said that he also talked today with Secretary General of the Organisation for Economic Cooperation and Development (OECD) Angel Gurria, with whom he agreed that the OECD should perform an expert study on regulations in Serbia.

The minister explained that Serbia's goal is to become member of this organisation once again because Yugoslavia lost the membership back in 1992 after 30 years of active involvement. He also added that at the meeting with Gurria he asked that Serbia take part in OECD's agriculture board.

Head of the French embassy in Belgrade's Economic Department Pierre Coste gave a statement to the Tanjug news agency saying that the economic climate in Serbia is highly favourable thanks to the implemented reforms and adopted laws.

Many French companies increased their investment in Serbia which is most obvious in the banking sector, said Coste and recalled that there used to be only one French bank in Serbia, namely the Societe General, until Credit Agricole bought Meridijan Bank.

Also, 50% of shares in the Italian Findomestic Bank, which recently entered the Serbian market, are owned by France's BNP Bank, adding that Intermarché is planning to open another sales office in Belgrade.

Coste said that French companies have so far invested €400 million in Serbia, however this is still less than the funds which other countries invested in 2006, such as Norway's Telenor who bought Mobtel.

According to Coste, French companies are very interested in the car industry in Serbia; however the issue of high land prices in Belgrade still remains to be solved.