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The Government of the Republic of Serbia

In the service of citizens

Work of bankruptcy trustees of Beograd department store to be re-examined

Belgrade, 1 March 2007

Serbian Minister of Economy Predrag Bubalo stated that government representatives held a meeting today with employees of Beograd department store who agreed to stop their protest, while the government agreed to re-examine the work of all previous trustees in bankruptcy.

Predrag Bubalo at today's press conference

At a press conference following the government session, Bubalo explained that during the meeting, attended by the Serbian Prime Minister and the Director of the Privatisation Agency, the collocutors agreed that only the company’s employes have the legitimate right to special legal remedy.

He explained that this means that only employes may submit a request to repeat the procedure which would re-examine the court decision on opening the bankruptcy proceeding because the judge who made the contestable decision is now under investigation.

According to Bubalo, they also agreed to schedule a meeting of creditors since by law the creditors have the right to decide on the future of this company.

The Minister said that he also informed government members today on the results of industrial production in January 2007 which increased by 11% against the same month last year.

He noted that the growth in economic activities was realised primarily thanks to favourable weather conditions, namely the fact that this year there were no restrictions in energy sources, therefore the production was unhindered in any way.

Bubalo said that this is the best evidence of how a stable and regular supply of energy sources is important for industrial growth.

Speaking on the sale of mining and metallurgical basin RTB Bor, the Minister rejected speculations that the selling price set at €400 million will be reduced.

He stressed that RTB Bor privatisation negotiations will be held only with the first ranked bidder in the tender, and that is Romanian Cuprom, which offered most – namely, €400 million for the socially owned capital. Bubalo also stressed that €80 million needs to be set aside to repair the slag soil.

Bubalo stressed that drainage of slag toward Majdanpek as well as water drainage to mine pits need to be prevented so as to avoid accidents such as recent one in Bor.

Bubalo recalled that it is necessary to invest in environmental protection of Bor mines, which is Serbian government’s aim.

The government decided today to set aside RSD 450 million from budget reserve for subsidising housing loans, the Minister confirmed and noted that payment of subsidies will start on Monday, March 5 in commercial banks according to Serbian government’s programme.