Serbian Roads company debts must be paid

Velimir Ilić says that Putevi Srbije’s (Serbian Roads) debts should not be included in every new budget.

Izvor: Beta

Tuesday, 27.11.2007.

10:47

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Velimir Ilic says that Putevi Srbije’s (Serbian Roads) debts should not be included in every new budget. The infrastructure minister said yesterday, at a meeting of the Parliamentary Traffic Committee, that the company’s debts needed to be turned into public debt. Serbian Roads company debts must be paid Ilic said that a source of finance needed to be secured for maintaining roads. He said that it was important to define the assets and the rate at which funds were taken from the National Investment Plan for the construction of Corridor 10 and the Belgrade bypass. He added that the city of Belgrade should also be involved in this because much of the highway would be integrated within the city traffic system. State Secretary of the Finance Ministry, Janko Guzijan, supported the proposal for increasing road tax on fuel prices by 10 to 15 percent. He said that the Finance Ministry was ready to turn the company’s debts, which total some EUR 127.5mn, into public debt to be paid off in a period of several years. Parliament was also criticized at today’s meeting for taking too long - sometimes up to two years - to approve foreign credit agreements. Such delays cost the state dear because it does not have access to the money, but continues to pay interest. The council decided that the next meeting, scheduled for December 3, would be used to present a plan and program for freeing Putevi Srbije of its debt. The minister responsible for the implementation of the National Investment Plan, Dragan Djilas, is also expected to attend the next meeting.

Serbian Roads company debts must be paid

Ilić said that a source of finance needed to be secured for maintaining roads.

He said that it was important to define the assets and the rate at which funds were taken from the National Investment Plan for the construction of Corridor 10 and the Belgrade bypass. He added that the city of Belgrade should also be involved in this because much of the highway would be integrated within the city traffic system.

State Secretary of the Finance Ministry, Janko Guzijan, supported the proposal for increasing road tax on fuel prices by 10 to 15 percent.

He said that the Finance Ministry was ready to turn the company’s debts, which total some EUR 127.5mn, into public debt to be paid off in a period of several years.

Parliament was also criticized at today’s meeting for taking too long - sometimes up to two years - to approve foreign credit agreements. Such delays cost the state dear because it does not have access to the money, but continues to pay interest.

The council decided that the next meeting, scheduled for December 3, would be used to present a plan and program for freeing Putevi Srbije of its debt.

The minister responsible for the implementation of the National Investment Plan, Dragan Đilas, is also expected to attend the next meeting.

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