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The Government of the Republic of Serbia

In the service of citizens

Agreement on special parallel relations for increased cooperation between Belgrade and Banja Luka

Belgrade, 28 June 2007

Serbian Minister of Trade and Services Predrag Bubalo said today that the bill on confirming the agreement on establishing special parallel relations between Serbia and Republika Srpska, which the government adopted at the government’s session today, implies institutional and other forms of cooperation between Belgrade and Banja Luka.

Predrag Bubalo

Bubalo told a press conference that the agreement was signed last year in September and stressed that after its adoption in parliament, it will become the legal basis for establishing special parallel relations, to which Serbia and Republika Srpska have a right according to the Dayton Agreement.

He said that the government adopted the Information regarding the obligation of the public road company “Putevi Srbije” to submit a monthly report to the Serbian government, in order to prevent increase of debt towards building contractors.

The Minister explained that this measure is a way to gradually deal with the debt inherited , as well as making sure that the public company for building roads will in the future only carry out work for which funds have been allocated.

Bubalo did not specify the amount of the debts towards building contractors, but said that the government will make efforts to clear the debt and in the future plan only those works for which money has been approved.

According to Bubalo, the government at its session today did not debate the continuation of the mining and metallurgical complex RTB Bor, adding that the committee in charge of restructuring the company during the previous term of the government decided to announce a new tender for sale of the Bor Group.

He stressed that soon it will be known whether the new members of the committee, led by Minister of Economy and Regional Development Mladjan Dinkic, will decide to do the same.

He said that the government decided today to separate state shares in the Institute of Mining which is part of the RTB Bor Group, so that it is not part of the privatisation process due to its importance not just for Bor, but generally for mining in Serbia.

According to Bubalo, the state will most probably have 100% ownership of the institute since it is the only major investor.

The government at its session today did not debate establishing wheat premiums, said Bubalo, adding that they are expected to be included in the €100 per hectare premium which will be paid to all registered agricultural producers.