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The Government of the Republic of Serbia

In the service of citizens

UAE to give $400 m for Serbian agriculture

Belgrade/Abu Dhabi, 27 March 2013

Minister of Finance and Economy Mladjan Dinkic announced today that a memorandum of understanding on strategic partnership of the company Etihad from the United Arab Emirates (UAE) and the domestic air carrier Jat Airways should be signed in mid April in Belgrade.

Author: infobiro.tv

Dinkic, who is on a working visit to Abu Dhabi, confirmed that the Abu Dhabi Fund for Development approved $400 million to Serbia for development of agriculture.

He explained that half of these funds will be utilised for the construction of irrigation canals throughout Serbia and the other half for favourable long-term loans to farmers for the purchase of equipment.

The contract for the approval of these funds will be signed in May and ratified by the Serbian Parliament in June, so that the funds could be available to farmers in the second half of this year, he announced.

Bearing in mind that this credit line has already been approved, Serbia will start with the construction of the network of irrigation canals already this spring, Dinkic underlined.

He said that the goal of the Serbian government is to put under irrigation at least 100,000 hectares as soon as possible, so that domestic agricultural production would not depend on drought and floods.

According to him, this will be beneficial to all farmers in Serbia because a public irrigation network will be made, and electrification of fields will also be provided in order to make irrigation cheaper.

On the other hand, partnership between Jat and Etihad entails a complete modernisation of Jat fleet, i.e. purchase of new airplanes, on grounds of which Etihad might take over 49% of ownership in this domestic company and conclude a long-term management contract.

Owing to this, Jat might become a part of Etihad’s alliance, and the business of our national air carrier might become profitable in the future.

Dinkic confirmed that the company Etihad expressed its readiness to immediately help Jat to purchase four new aircraft on lease, which it will need as of June because of the start of the tourist season.

The commercial cooperation between Jat and Etihad includes the introduction of daily flights from Belgrade to Abu Dhabi from mid-year, and the opening of the Belgrade-Berlin-Chicago line in cooperation with Air Berlin and three more destinations in the US, the Minister said.

He pointed out that the air company Etihad has a fleet of 72 modern airplanes and added that last year it generated profit of $4.8 billion.

Dinkic said that this company has a minority ownership and management rights in the German Air Berlin, Irish Aer Lingus, Virgin Australia and Air Seychelles.

The Minister reiterated that Serbia wishes Jat to become a profitable company and underlined that Etihad will be an ideal partner for our national air carrier.

Dinkic said that it was agreed that representatives of Etihad come to Belgrade in mid-April and start with a detailed analysis of Jat’s business activity.

Director of the Abu Dhabi Fund for Development Mohammed Saif Al Suwaidi said that he is very satisfied with the meeting with Dinkic and his associates, noting that today’s decision on financial support to the Serbian agriculture is a result of successful cooperation in the past few months.

In the next few days Dinkic will meet with representatives of companies Mubadala Aerospace and ATIC, and with representatives of the Abu Dhabi Investment Authority.