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The Government of the Republic of Serbia

In the service of citizens

Serbia, Republika Srpska boost economic cooperation

Belgrade, 27 May 2009

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and Republika Srpska Prime Minister Milorad Dodik talked in Banja Luka today about boosting economic cooperation and removing obstacles preventing the flow of goods between the two countries.

The Ministry says in a statement that following the meeting Dinkic said they agreed to form an operative body to speed up procedures at the borders with the aim of increasing trade.

He said they agreed there are certain administrative issues resulting from too much red tape on the Serbian side, adding that the task of the operative body will be to speed up the cross-border goods exchange.

Dinkic recalled that the Serbian parliament will adopt a bill on food safety on Friday which envisages a smaller scope of inspections in order to speed up trade.

He said that he and Dodik agreed to start implementing the subsidised consumer loan programme in Republika Srpska as well, starting from September, as well as the programme enabling citizens to replace old vehicles for new ones under favourable conditions.

As of September 1 Republika Srpska citizens will be able to purchase Punto vehicles produced in Kragujevac at the price of €5,999 for the basic model with the favourable loan implying a seven year repayment period and an annual interest rate of 4.5%, noted Dinkic, adding that the terms are the same for Serbian citizens.

He said that he expects that the contracts and agreements necessary for the implementation of this programme in Republika Srpska will be signed by the middle of June, adding that the same proposal will be presented to the Bosnia-Herzegovina Federation.

We will initiate talks with Fiat about localization regarding Serbia as well as Republika Srpska, said Dinkic, adding that there is also a great deal of interest for the subsidised sale of tractors produced in Serbia and an agreement will be prepared concerning that as well.

Dinkic confirmed that it has been agreed that 2,000 tractors will be placed on the Republika Srpska market with a discount of €2000. He said that Serbia will add furniture manufactured in Republika Srpska to its list of subsidised products and that the agreement on subsidised loans will include personal holiday loans applicable to Serbia as well as Republika Srpska.

The realisation of energy sector investments will be started soon because it is in the interest of the entire region to increase the production of electricity. Republika Srpska and Serbia cannot independently implement these projects and this is why there are plans for joint investments and the construction of a hydro-electric power plant on the Drina River with one of the leading European energy sector producers, stressed Dinkic.

Dinkic and Republika Srpska Minister for Economic Relations and Regional Cooperation Jasna Brkic signed today a memorandum of cooperation between the two ministries.

Dinkic will hold a lecture titled “Effects of the Global Economic Crisis upon Countries of the Region” in Banja Luka tomorrow at the Faculty of Economics.