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The Government of the Republic of Serbia

In the service of citizens

Agreement on Economic Cooperation between Serbia, Republika Srpska

Banja Luka, 14 July 2009

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and Republika Srpska Prime Minister Milorad Dodik today attended the enforcement of the Agreement on Economic Cooperation between Serbia and Republika Srpska.

In the presence of Dodik and Dinkic at the Republika Srpska Administrative Centre in Banja Luka, Republika Srpska Minister of Finance Aleksandar Dzombic and directors of Komercijalna and Uni Kredit banks signed agreements on subsidising interest rates for loans to farmers for purchasing tractors.

Following the signing Dinkic said that he is pleased that the project has been realised in such a short period, as well as that there is interest in Republika Srpska for purchasing tractors and Punto cars, adding that deliveries to Republika Srpska will begin shortly.

He said that as part of this project, the sale of furniture made in Republika Srpska will begin in Serbia, with certain loan benefits.

It is important the Agreement on Special Parallel Relations comes into practice, especially in the economy, since it will help us boost cooperation and enable our citizens to buy quality products at a favourable price, Dinkic stressed.

He said that the programme for consumer loans in Serbia has yielded satisfactory results because in these times of crisis it enables people to acquire the goods they need at reasonable prices.

The Minister voiced his pleasure at the fact that Uni Kredit Bank from Republika Srpska will grant a 3.7% interest rate for purchasing tractors, which is lower than in Serbia, where the rate stands at 4.5%.

He also noted that there are buyers in Republika Srpska interested in the Punto car, announcing his personal involvement in ensuring that the sale of this vehicle begins in Republika Srpska before September.

Dinkic added that the programme also refers to the Federeation of Bosnia-Herzegovina, whose authorities have still not sent an answer to the Serbian government.

Dodik expressed his satisfaction over the fact that the government of Serbia has worked energetically on this project, which should be a road map for some other forms of cooperation during the upcoming period.

This is an important moment, when the whole region and the whole world are facing business, economic and financial troubles, he said, adding that farmers will now be able to buy cheaper machinery, which will increase food production in Republika Srpska.

Dzombic explained that under the agreement, the purchase of tractors and Fiat Punto cars will be subsidised from the Republika Srpska budget, whereas Serbia will subsidise the purchase of furniture.

The Republika Srpska government has provided soft loans with a seven year grace period and a maximum interest rate of 4.5%, he added. Dodik and Dinkic handed over the first 30 IMT tractors to general distributor Agrokop Kobatovci – Aleksandrovac, after which they visited the Vrbas furniture factory.

Later in the afternoon the two officials will attend a roundtable discussion themed "Measures to Alleviate the Negative Effects of the Global Economic Crisis on Republika Srpska."