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A:
Government will not allow RTB Bor to be jeopardised
Belgrade,
14 January 2009
State Secretary of Economy and Regional Development Nebojsa Ciric today stated that the government will not allow RTB Bor’s business operations to be jeopardised because of the economic crisis, even if there are no prospective buyers for the company.
At a press conference Ciric recalled that the deadline for submitting bids for a strategic partnership with the mining and metallurgical complex RTB Bor expired on January 31, adding that it will be extended if necessary.
He said 11 companies were interested in RTB Bor in September, of which three showed interest in the entire RTB Bor system, while other eight only wished to purchase parts of the company.
He said that these companies are still interested in Bor, so we expect some of them to apply.
Ciric stressed that the mining industry has been seriously jeopardised due to the decrease in funds, noting that copper producers are currently in a very bad position, as the price of copper has decreased from $8.000 to $2.700 per tonne during the past several months.
He stressed that this year citizens should receive free shares in the Serbian oil industry NIS and pharmaceutical company Galenika, adding that the tender for Galenika will most likely be announced in the third quarter of 2009.
He reiterated the Ministry’s estimates, according to which citizens will get approximately €1,000 each, explaining however that the price will depend on market circumstances and the profit made by the six public companies whose shares are to be distributed.
Every citizen with the right to free shares will get around €1,000 but only after the privatisation of these companies is completed, he explained, adding that apart from NIS and Galenika, these include Telekom Srbija, Jat Airways, Airport Belgrade and the Serbian electric power industry EPS.
Ciric also said he expects the privatisation advisor for Telekom to come up with a privatisation strategy before April, adding that Telekom and Airport Belgrade will most likely be sold in 2010.
He affirmed that the Ministry is preparing a set of measures for privatised companies to help them overcome the global crisis.
He noted that this year privatisation will be somewhat hampered by the crisis, voicing his expectation that the positive effects of the decree, according to which companies can be bought in instalments, will be continued.
Ciric recalled that from 2001 onwards a total of 1,796 companies have been privatised, drawing in around €2.9 billion, adding that the privatisation of all socially-owned companies was announced before the end of 2008, as envisaged by the Law on privatisation.
The total investments agreed upon with buyers so far amount to €1.4 billion, while social welfare programmes stand at €280 million.
Director of the Privatisation Agency Vesna Dzinic said that 412 privatisations are underway, while 201 processes have been stopped.
She added that over 300 companies have fulfilled the conditions for forced liquidation, adding that seven companies which have already been offered for sale at three tenders will most likely be declared bankrupt.
Amongst others, these are Fabrika Secera, 29. Novembar, Viskoza, Janko Lisjak and Vocarstvo, she said.
The conference also looked at individual companies whose tenders were declared unsuccessful. Thus it was concluded that Mostogradnja Construction Company will not be offered at another tender but will remain operational this year, as there is enough work for the company.
Dzinic recalled that the new regulations have enabled buyers to pay only 30% of the price after signing the sales contract and the rest over the period of five years, adding that this will remain in force until the privatisation process ends.
She reiterated that by end-January the Ministry will prepare measures to help new company owners overcome the crisis, provided that they fulfil all their obligations to the state.
She added that the Privatisation Agency has conducted 5,911 controls of privatised companies and annulled 388 signed sale contracts, that is, around 20% of the total number of closed deals.
He said 11 companies were interested in RTB Bor in September, of which three showed interest in the entire RTB Bor system, while other eight only wished to purchase parts of the company.
He said that these companies are still interested in Bor, so we expect some of them to apply.
Ciric stressed that the mining industry has been seriously jeopardised due to the decrease in funds, noting that copper producers are currently in a very bad position, as the price of copper has decreased from $8.000 to $2.700 per tonne during the past several months.
He stressed that this year citizens should receive free shares in the Serbian oil industry NIS and pharmaceutical company Galenika, adding that the tender for Galenika will most likely be announced in the third quarter of 2009.
He reiterated the Ministry’s estimates, according to which citizens will get approximately €1,000 each, explaining however that the price will depend on market circumstances and the profit made by the six public companies whose shares are to be distributed.
Every citizen with the right to free shares will get around €1,000 but only after the privatisation of these companies is completed, he explained, adding that apart from NIS and Galenika, these include Telekom Srbija, Jat Airways, Airport Belgrade and the Serbian electric power industry EPS.
Ciric also said he expects the privatisation advisor for Telekom to come up with a privatisation strategy before April, adding that Telekom and Airport Belgrade will most likely be sold in 2010.
He affirmed that the Ministry is preparing a set of measures for privatised companies to help them overcome the global crisis.
He noted that this year privatisation will be somewhat hampered by the crisis, voicing his expectation that the positive effects of the decree, according to which companies can be bought in instalments, will be continued.
Ciric recalled that from 2001 onwards a total of 1,796 companies have been privatised, drawing in around €2.9 billion, adding that the privatisation of all socially-owned companies was announced before the end of 2008, as envisaged by the Law on privatisation.
The total investments agreed upon with buyers so far amount to €1.4 billion, while social welfare programmes stand at €280 million.
Director of the Privatisation Agency Vesna Dzinic said that 412 privatisations are underway, while 201 processes have been stopped.
She added that over 300 companies have fulfilled the conditions for forced liquidation, adding that seven companies which have already been offered for sale at three tenders will most likely be declared bankrupt.
Amongst others, these are Fabrika Secera, 29. Novembar, Viskoza, Janko Lisjak and Vocarstvo, she said.
The conference also looked at individual companies whose tenders were declared unsuccessful. Thus it was concluded that Mostogradnja Construction Company will not be offered at another tender but will remain operational this year, as there is enough work for the company.
Dzinic recalled that the new regulations have enabled buyers to pay only 30% of the price after signing the sales contract and the rest over the period of five years, adding that this will remain in force until the privatisation process ends.
She reiterated that by end-January the Ministry will prepare measures to help new company owners overcome the crisis, provided that they fulfil all their obligations to the state.
She added that the Privatisation Agency has conducted 5,911 controls of privatised companies and annulled 388 signed sale contracts, that is, around 20% of the total number of closed deals.
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