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The Government of the Republic of Serbia

In the service of citizens

Procedure of sale of “Telekom Srbija” conducted transparently

Belgrade, 27 April 2011

Prime Minister Mirko Cvetkovic said today that the government does not consider it necessary that companies such as “Telekom Srbija” finance budgetary needs in the long run, but rather their profits should be reinvested in further development of resources.

Mirko Cvetkovic

Author: Tanjug

Cvetkovic, responding to questions of MPs at the Serbian parliament, said that last year "Telekom" generated significant profits that could be used for expansion of the technical base, noting that this company needs new investment.

The Prime Minister underlined that the procedure of sale of “Telekom Serbia” was run transparently, through tender procedure in which it is not known in advance who the buyer will be.

He noted that the procedure still lasts which is why it is not appropriate to speak whether there will be a buyer or not and that we should way for the procedure to end.

He also pointed out that it is a common practice in such procedures to hire a financial advisor that would point to possible irregularities, noting that the government hired the world-renowned firm "Citibank".

There was no breach of any legal provision in the procedure of sale of “Telekom”, Cvetkovic concluded.

He said that in May the Serbian government should begin talks with the International Monetary Fund (IMF) on a new arrangement of Serbia with this international financial institution.

He said that implementation of the new arrangement could begin in August or September.

The Prime Minister also stressed that the money from the sale of “Telekom Srbija” will be used in a transparent and efficient manner, and that abuse will not be possible for a number of reasons, including the fact that the fiscal policy is under the IMF’s control.

Cvetkovic explained that each collected dinar will be treated in a special way and its flow monitored so as not to leave any room for investing these funds into anything that is not transparent.