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Government wants to maintain macroeconomic stability
Belgrade,
21 March 2008
Serbian Deputy Prime Minister Bozidar Djelic announced today that the government will decide next week on finance changes regarding construction of the Horgos-Pozega motorway.
Djelic told journalists following talks with representatives of AmCham Serbia that financial institutions that are to invest over €1 billion in the construction demanded that the deadline for closing the financing of construction be moved from March 31 to December 31, 2008.
He said that the government would not have agreed to that if the concessionaries, Alpina and PORR, had not agreed to self-finance construction this year.
The government must secure guarantees that Serbia will not suffer damage in case the concessionaries do not have sufficient funds to finance the works.
According to him, if the concessionaries agree to provide guarantees, their proposal to finance the motorway by themselves will be adopted.
The Deputy Prime Minister explained that an alternative would be that construction of the motorway does not start this year, adding that the government agrees that the motorway needs to be built.
Although this is now a caretaker government, it will not jeopardize the country’s macroeconomic stability and increase consumption because of the forthcoming elections.
The fact that there was a slight budget surplus during the first two and a half months shows that the government wishes to maintain macroeconomic stability.
Djelic said that he told investors that the government condemns any form of violence in the country, particularly what happened to the US embassy in Belgrade, and that Serbia has an international obligation to compensate for the damage caused.
Serbian Minister of Economy and Regional Development, Mladjan Dinkic said that top European transport companies have sent a request to move the deadline for submitting bids for the company Lasta to June, so that they may see the results of the elections.
According to Dinkic, the previous deadline was April 4 and potential bidders are Arriva London, Kavim from Israel and Keolis from France.
At the request of the investors, bidding for Zastava will now be held in September, said the Minister, adding that there is a possibility that a sum of €300 million might be invested in the company, and potential bidders are the fourth and fifth largest automobile companies in the world.
Djelic and Dinkic said that if political instability continues then foreign investors might turn to Bulgaria or Romania.
He said that the government would not have agreed to that if the concessionaries, Alpina and PORR, had not agreed to self-finance construction this year.
The government must secure guarantees that Serbia will not suffer damage in case the concessionaries do not have sufficient funds to finance the works.
According to him, if the concessionaries agree to provide guarantees, their proposal to finance the motorway by themselves will be adopted.
The Deputy Prime Minister explained that an alternative would be that construction of the motorway does not start this year, adding that the government agrees that the motorway needs to be built.
Although this is now a caretaker government, it will not jeopardize the country’s macroeconomic stability and increase consumption because of the forthcoming elections.
The fact that there was a slight budget surplus during the first two and a half months shows that the government wishes to maintain macroeconomic stability.
Djelic said that he told investors that the government condemns any form of violence in the country, particularly what happened to the US embassy in Belgrade, and that Serbia has an international obligation to compensate for the damage caused.
Serbian Minister of Economy and Regional Development, Mladjan Dinkic said that top European transport companies have sent a request to move the deadline for submitting bids for the company Lasta to June, so that they may see the results of the elections.
According to Dinkic, the previous deadline was April 4 and potential bidders are Arriva London, Kavim from Israel and Keolis from France.
At the request of the investors, bidding for Zastava will now be held in September, said the Minister, adding that there is a possibility that a sum of €300 million might be invested in the company, and potential bidders are the fourth and fifth largest automobile companies in the world.
Djelic and Dinkic said that if political instability continues then foreign investors might turn to Bulgaria or Romania.
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