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The Government of the Republic of Serbia

In the service of citizens

Faster privatisation, more foreign investment take priority in government’s economy policy

Subotica, 27 August 2004

Serbian Deputy Prime Minister Miroljub Labus visited several Subotica’s firms and, during talks with the electric engine maker Sever’s management, said that the government has two priorities in its economy policy: to preserve the stability of the market and to speed up privatisation and attract fresh investment.

Miroljub Labus

Labus recalled that last year, a decision was made to privatise 35 out of the 67 enterprises being restructured. The government intends to speed up their privatisation, said Labus, adding that the process would probably be even faster in Sever’s case.

Sever Corporation President Mirko Simic said that a decision as to whether to call a fresh tender should be made as soon as possible, or else, negotiations should be launched with the sole potential buyer in the first, annulled tender, Austrian firm ATB. Simic said he is in favour of negotiations, in order to resolve the future of Sever by the end of the year.

Labus said that the Ministry of Economy is in charge in that case, refusing to give any further comments in advance.

“The government wants to see additional investment in the process of privatisation, not unnecessary lay-offs. It is not the price at which the company will be sold the top issue, the top issue is the additional investment, new technology and keeping the employment rate as high as possible,” the Deputy Prime Minister said.

According to him, the government is ready to do everything in its power in the case of Sever’s old debts if it is to the benefit of the company’s privatisation, the Beta news agency reported.