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The Government of the Republic of Serbia

In the service of citizens

Preserve economic potential, stop further social stratification

Vranje, 3 March 2009

Deputy Prime Minister for EU Integration Bozidar Djelic today stated that Serbia had a more ordered budget and banking system when the crisis hit than many of their neighbouring countries.

In a meeting with businessmen from Vranje, Djelic said that Serbia’s top goal this year is to preserve economic potential and solidarity in order to prevent further social stratification and the appearance of new categories of the poor.

He recalled that on January 29 the government adopted a package of measures to ensure loans to the economy, adding that thanks to funds from the budget, interest rates on medium-term loans will be reduced.

He said that local self-governments will be able to use more EU resources this year than before, adding that €45 million has been earmarked for this purpose.

Djelic said that the financial package for Corridor 10 is in place, adding that a large number of people will be employed to build the sections to the Macedonian and Bulgarian borders.

During the second half of 2009 the government expects additional funds from the IMF to maintain the dinar exchange rate.

Businessmen from Vranje informed the Deputy Prime Minister of the problems they have in everyday business, of which the largest is with the electric power industry which, for instance demands certain businessmen finance the construction of transformer stations.

SME representatives asked Djelic to extend the deadlines for paying off loans, as well as to revise the initial prices of companies which have not been privatised but still have the same price as at the beginning of privatisation, although their actual value has decreased in the meantime.

Djelic also visited Bujanovac today where he took part in a panel discussion titled “The European Future of Southern Serbia”.

Djelic said that Serbia will apply for candidate status this year, because joining the EU is the best guarantee for long term peace and economic prosperity.

He said that 75% of investment in Serbia last year came from the EU and that Serbia conducts 90% of its foreign trade with the EU, reiterating that he expects that visa restrictions for Serbian citizens will be removed in the second half of this year.

He said that one of the advantages southern Serbia has is that the Corridor 10 project is a priority not just for the municipalities of Bujanovac or Presevo but for the whole of Europe.

He said that the Serbian government wishes to make it possible for EU funds to reach the municipalities that need them the most. He voiced hope that the municipalities in southern Serbia will get EU funding for as many projects as possible.