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The Government of the Republic of Serbia

In the service of citizens

Strengthening SMEs sector in south, southwest Serbia

Belgrade, 17 April 2013

Minister of Regional Development and Local Self-Government Verica Kalanovic signed today in the Serbian government the Memorandum of understanding that envisages support to the development of the sector of small and medium-sized enterprises (SMEs) in 12 municipalities in south and southwest Serbia.

From left: Susan Fritz, Michael Kirby, Verica Kalanovic and Ivica Ezdenci

The Memorandum was also signed by US Ambassador to Serbia Michael Kirby, Director of USAID Mission to Serbia Susan Fritz and Director of the National Agency for Regional Development Ivica Ezdenci.

Speaking at a press conference after the signing of the document, Kalanovic underlined that the aim of the Memorandum, whose implementation will be financed by the USAID and carried out by the National Agency for Regional Development, is solving the problem of unemployment and underdevelopment of south and southwest Serbia through boosting the SMEs sector.

The support to this sector will be implemented in the least developed municipalities with the highest unemployment rate, and these are Vranje, Leskovac, Presevo, Bujanovac, Mevedja, Raska, Novi Pazar, Sjenica, Tutin, Priboj, Prijepolje and Nova Varos.

The Minister said that the signing of this document confirms successful cooperation of the Serbian government and the United States, and that the Memorandum will affect the resolution of the two biggest problems in Serbia, and these are unemployment and big regional differences.

According to her, south and southwest Serbia are burdened with economic, social and demographic problems, which is a broader social problem that should be solved through cooperation of all authorities.

Kalanovic reiterated that the priority of the Serbian government is to strengthen the economy because it implies the improvement of the quality of life of citizens, and warned that the situation in southern Serbia is alarming in economic, social and demographic terms.

She explained that for that reason, the activities from the document signed today are aimed at strengthening companies in the 12 municipalities in south and southwest Serbia.

Kirby said that the Serbian government will be a partner in the implementation of this project, adding that for this reason it is very important to strengthen the capacity of institutions involved in the development of the SMEs sector and to support the strengthening of the competitiveness of the sector.