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The Government of the Republic of Serbia

In the service of citizens

Over 2.7m applications for shares of six major public companies

Belgrade, 22 April 2008

Serbian Minister of Economy and regional development Mladjan Dinkic stated today that so far over 2.7 million citizens have applied for shares of six major public companies and warned that the application deadline of July 31 will not be extended.

Mladjan Dinkic

At a press conference, Dinkic specified that as for former employees in these companies, so far 43,747 have applied, of which 24,000 used to work in NIS, 12,500 in Telekom Srbija, 6,400 in Jat Airways and a little over 1,000 in Galenika.

He noted that 80,000 citizens did not meet the required conditions because they gave incorrect data or already have shares in other companies.

According to him, around 25,000 applicants do not have permanent residency in Serbia and are not eligible for free shares.

Speaking about the request by the Roma National Council to extend the deadline until September, Dinkic said that it could be done only if the law is changed. However, he voiced understanding for the Roma because it is difficult for them to obtain a certificate of permanent residency.

He stressed that although the Roma are equal citizens of this country, the law must be respected.

Dinkic also said that a delegation of the Italian car maker Fiat arrives tomorrow in Serbia and recalled that this company is interested in taking over Zastava from Kragujevac.

A tender for the privatisation of Zastava Automobili should be called, but we will try to find a way to help Fiat and Volkswagen, who are both interested in setting up a car factory in Serbia, to work on the improvement of capacities for this branch of industry, said Dinkic.

According to Dinkic, interest in investing in Serbia has grown since the state promised to cover 25% of expenses for companies that invest a minimum of €200 million and employ over 1,000 workers.

The Minister said that the intention of both car makers is for most of the cars produced to be exported from Serbia as they have low profit tax rate and quality and cheap labour.

He announced that import rates for cars will be halved by next year.

Dinkic recalled that the state provided nearly €15 million in subsidies for Zastava annually and that its successful privatisation would relieve the budget of that sum.

He also announced that a call for a privatisation advisor for Telekom Srbija will be published in London’s Financial Times on April 24.

He said that the state will keep a majority share in Telekom i.e. 50% plus one share, 15% will be distributed among citizens while employees will receive €200 per year of employment, which leaves 20% to be placed on the stock exchange.

He said that each citizen will be able to purchase Telekom shares to the amount of €5,000.

Telekom shares will be traded on the Belgrade Stock Exchange and the London Stock Exchange.

Director of the Privatisation Agency Vesna Dzinic announced that the invitation will also be published in the Official Gazette of the Republic of Serbia on April 29.

One of the conditions that the privatisation advisor must meet is that it must be an investment bank which has overseen at least two successful privatisations worth at least €500 million each in the telecommunications sector, she noted.