Serbia to set up development bank in fall

Serbian Prime Minister Mirko Cvetković stated Friday that the establishment of development bank could be expected in September or October this year.

Izvor: Tanjug

Friday, 25.03.2011.

15:40

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Serbian Prime Minister Mirko Cvetkovic stated Friday that the establishment of development bank could be expected in September or October this year. At the conference on Serbia's export potentials, Cvetkovic said the government will make no haste to establish that institution because it wants to precisely determine the way in which it will run its business. Serbia to set up development bank in fall As regards the two financial institutions that already exist in Serbia, the Agency for Export Insurance and Financing (AOFI) and Development Fund, the prime minister said that there are two scenarios: they would either be integrated into the development bank or their operations would be reduced. Cvetkovic underlined that although it is named 'bank', the functions of this development institution greatly differ from other commercial banks. It is actually an instrument for implementation of the state's development policy, and it is a non-profit institution, and it does not conform to rules of the banking system, he added. Mirko Cvetkovic also stated on Friday that negotiations with Telekom Austria on the sale of Telekom Srbija, Serbia's national telecommunications company, are not underway, adding that the working group of the Serbian Finance Ministry is to present a proposal on what will happen to the invited tender by Monday, March 28. "Five working days expire on Monday, and I believe that by then they will have prepared a proposal," Cvetkovic stressed. According to him, the proposals may be to begin negotiations, to refuse the offer or request supplements if the bid is incomplete. The deadline for submitting bids expired on March 21, when Telekom Austria submitted a bid of EUR 950mn for the capital of Telekom Srbija and EUR 450mn for investments. The domestic media are speculating that negotiations with Telekom Austria have begun, and that they are ready to increase their bid to EUR 1.2mn but in return request from Serbia's Commission for Protection of Competition to approve the merger of VIP and Telekom Srbija mobile operators. Mirko Cvetkovic (Tanjug)

Serbia to set up development bank in fall

As regards the two financial institutions that already exist in Serbia, the Agency for Export Insurance and Financing (AOFI) and Development Fund, the prime minister said that there are two scenarios: they would either be integrated into the development bank or their operations would be reduced.

Cvetković underlined that although it is named 'bank', the functions of this development institution greatly differ from other commercial banks. It is actually an instrument for implementation of the state's development policy, and it is a non-profit institution, and it does not conform to rules of the banking system, he added.

Mirko Cvetković also stated on Friday that negotiations with Telekom Austria on the sale of Telekom Srbija, Serbia's national telecommunications company, are not underway, adding that the working group of the Serbian Finance Ministry is to present a proposal on what will happen to the invited tender by Monday, March 28.

"Five working days expire on Monday, and I believe that by then they will have prepared a proposal," Cvetković stressed.

According to him, the proposals may be to begin negotiations, to refuse the offer or request supplements if the bid is incomplete.

The deadline for submitting bids expired on March 21, when Telekom Austria submitted a bid of EUR 950mn for the capital of Telekom Srbija and EUR 450mn for investments.

The domestic media are speculating that negotiations with Telekom Austria have begun, and that they are ready to increase their bid to EUR 1.2mn but in return request from Serbia's Commission for Protection of Competition to approve the merger of VIP and Telekom Srbija mobile operators.

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