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Dinkic announces amendments to decree on privatisation
Belgrade,
14 October 2008
Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic announced that next week the Serbian government will discuss decrees regulating tender procedure and privatisation through auctioning.
Dinkic told the Tanjug news agency that that the aim of these amendments is to considerably facilitate and speed up the privatisation of the remaining socially-owned companies because of the global financial crisis.
According to him the proposed amendments will enable first ranked bidders at tenders and auctions to acquire management rights in privatised companies by paying the sale price in instalments over a period of five years, with a down payment of a minimum 30% of the starting price.
We will propose such amendments to payment terms bearing in mind that participants in privatisation so far mostly financed their purchases through bank loans, which banks have now ceased granting due to the global financial crisis, specified the Minister.
He noted that this gave rise to the need for a new model which will enable Serbia to conclude the privatisation process within the projected deadline, even if it had to do it without the support of banks.
The state will charge appropriate interest on the remaining portion of the debt to the amount of euribor plus 2%, which are more favourable conditions than those offered by banks even before the crisis broke out. The buyer will immediately acquire the management right, but will become the owner only after he pays the last instalment, said Dinkic.
According to him this will mean that the bidder who wins the tender will not become the owner when he signs the sale contract, but only after he pays the last instalment, just as if the buyer were a socially-owned company which made a purchase through leasing.
According to him the proposed amendments will enable first ranked bidders at tenders and auctions to acquire management rights in privatised companies by paying the sale price in instalments over a period of five years, with a down payment of a minimum 30% of the starting price.
We will propose such amendments to payment terms bearing in mind that participants in privatisation so far mostly financed their purchases through bank loans, which banks have now ceased granting due to the global financial crisis, specified the Minister.
He noted that this gave rise to the need for a new model which will enable Serbia to conclude the privatisation process within the projected deadline, even if it had to do it without the support of banks.
The state will charge appropriate interest on the remaining portion of the debt to the amount of euribor plus 2%, which are more favourable conditions than those offered by banks even before the crisis broke out. The buyer will immediately acquire the management right, but will become the owner only after he pays the last instalment, said Dinkic.
According to him this will mean that the bidder who wins the tender will not become the owner when he signs the sale contract, but only after he pays the last instalment, just as if the buyer were a socially-owned company which made a purchase through leasing.
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