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The Government of the Republic of Serbia

In the service of citizens

Privatisation to provide funds for building infrastructure

Belgrade, 29 November 2007

Serbian Minister of Economy and Regional Development Mladjan Dinkic said today that privatisation of public companies could provide significant funds for building infrastructure, which is one of preconditions for attracting foreign investments.

Author: Beta

Dinkic presented the concept of privatisation of public companies at a session of the council of the association of independent trade unions and said that building modern infrastructure could attract large foreign investments during the next three years.

According to Dinkic, this would make Serbia a focal point for investors, which is particularly important bearing in mind unfortunate political problems.

The Minister said that even without proceeds from privatisation of the Serbian oil company NIS the budget would be balanced but the country would have to get into debt.

We could have a balanced budget but if we want to develop we must invest €2 billion in traffic infrastructure alone during the next three years, said Dinkic and recalled that works on Corridor 10 and other roads, ring-roads and bridges near Belgrade are not finished yet.

He explained that with the majority privatisation of NIS everybody would get more money – employees, state and citizens, and that this model would attract other quality foreign investors. Dinkic said that one part of purchased shares will be set aside as guarantee until the buyer fulfills the investment programme.

Speaking on free distribution of shares to citizens, the Minister said that some proposals of the trade union were adopted as well as the proposal to sell local and communal companies according to this concept.

The Minister said that these companies should be ready for privatisation by 2010 and that a special law on this will be adopted.

The Minister said that employees in these companies will be able to choose whether to wait for shares of their own companies or opt for free shares in public companies.