IFC approves loan to Farmakom

The International Financial Corporation (IFC) has approved one of the biggest loans in Eastern Europe to Sabac-based Farmakom company. Farmakom MB has received one of the biggest tributes for its business policy and development vision by reaching a credit arrangement with the IFC in Washington. IFC approves loan to Farmakom The IFC is the largest global development institution which focuses on private sector in developing countries. Farmakom owner and Director Miroslav Bogicevic said the agreement had been initialed and that it would be signed on October 14 in Sabac. “The fact that we have become IFC’s client is a great tribute to our firm – a tribute that we have solid order and position, that we have a clear and realistic development vision,” he told daily Politika. The loan will be used to refinance previous domestic loans which will enable Farmakom to have a long-term stability and new development opportunities. “Until recently we could not choose loans in Serbia that would follow our expansion. Furthermore, we were unable to choose the time when we would take them. Circumstances were such that loans were taken not when they were needed but as a precaution and early,” Bogicevic was quoted as saying. According to the owner, Farmakom had a turnover worth EUR 300mn last year in all six companies and it is expected that this year’s turnover will be EUR 550mn. Such result in Serbia, which has been almost de-industrialized thanks to failed privatizations, is undoubtedly impressive, the daily writes. “We have achieved that with a business policy that relies on domestic intelligence and domestic raw materials, along with the orientation toward the highest processing phases – to add a new value to raw materials. We have managed to reach a complete independence regarding raw materials, which is every company’s dream,” Bogicevic pointed out. Production is usually only a half of the story, the products need to be sold as well, Politika wrote. The Farmakom owner says his company has no problems with that, but adds that there is a part of the “Serbian story” in the foodstuffs department. “We are very export- and development-oriented firm and we adhere to principles ‘do or die’. Our car battery factory in Sombor, for example, exports 95 percent of products. Its markets are in the Arab, African countries and it covers the entire West Europe, Russia and former Soviet republics. And of course, former Yugoslav republics,” Bogicevic stressed. “Zajaca lead mining company also exports everything it produces. The export share is bigger than 50 percent in the entire system. Some firms, such as foundries in Guca and Pozega are about to significantly increase their export, which means that in foreseeable future we will export about 65 percent of the total production in the system,” the Farmakom director and owner explained. He also added that Sabac Dairy was today the only dairy in Serbia that continued to grow, Politika writes. “Ever since it became a part of our system in 2004, it has increased its production by about four times while all other dairies kept dropping. At the moment there are ‘live’ agreements that exceed EUR 60mn. We have penetrated the Russian market quickly, and we received an offer a few days ago from a large world dairy whose name I still cannot reveal, for an excellent long-term business arrangement. I believe we will reach an agreement,” Bogicevic told the daily. When asked about dinar exchange rate, the Farmakom owner said: “I also think that the exchange rate is unrealistic or stimulant, neither for domestic production nor for export. But since we cannot influence that we do not complain either, even though we lost EUR 20mn this year just because of the inadequate exchange rate, at the time when euro dropped from RSD 107 to RSD 97. Only a realistic exchange rate protects the domestic production and encourages export. And we are dead without export,” Bogicevic concluded.

IFC approves loan to Farmakom

The IFC is the largest global development institution which focuses on private sector in developing countries.

Farmakom owner and Director Miroslav Bogićević said the agreement had been initialed and that it would be signed on October 14 in Šabac.

“The fact that we have become IFC’s client is a great tribute to our firm – a tribute that we have solid order and position, that we have a clear and realistic development vision,” he told daily Politika.

The loan will be used to refinance previous domestic loans which will enable Farmakom to have a long-term stability and new development opportunities.

“Until recently we could not choose loans in Serbia that would follow our expansion. Furthermore, we were unable to choose the time when we would take them. Circumstances were such that loans were taken not when they were needed but as a precaution and early,” Bogićević was quoted as saying.

According to the owner, Farmakom had a turnover worth EUR 300mn last year in all six companies and it is expected that this year’s turnover will be EUR 550mn.

Such result in Serbia, which has been almost de-industrialized thanks to failed privatizations, is undoubtedly impressive, the daily writes.

“We have achieved that with a business policy that relies on domestic intelligence and domestic raw materials, along with the orientation toward the highest processing phases – to add a new value to raw materials. We have managed to reach a complete independence regarding raw materials, which is every company’s dream,” Bogićević pointed out.

Production is usually only a half of the story, the products need to be sold as well, Politika wrote. The Farmakom owner says his company has no problems with that, but adds that there is a part of the “Serbian story” in the foodstuffs department.

“We are very export- and development-oriented firm and we adhere to principles ‘do or die’. Our car battery factory in Sombor, for example, exports 95 percent of products. Its markets are in the Arab, African countries and it covers the entire West Europe, Russia and former Soviet republics. And of course, former Yugoslav republics,” Bogićević stressed.

“Zajača lead mining company also exports everything it produces. The export share is bigger than 50 percent in the entire system. Some firms, such as foundries in Guča and Požega are about to significantly increase their export, which means that in foreseeable future we will export about 65 percent of the total production in the system,” the Farmakom director and owner explained.

He also added that Šabac Dairy was today the only dairy in Serbia that continued to grow, Politika writes.

“Ever since it became a part of our system in 2004, it has increased its production by about four times while all other dairies kept dropping. At the moment there are ‘live’ agreements that exceed EUR 60mn. We have penetrated the Russian market quickly, and we received an offer a few days ago from a large world dairy whose name I still cannot reveal, for an excellent long-term business arrangement. I believe we will reach an agreement,” Bogićević told the daily.

When asked about dinar exchange rate, the Farmakom owner said:

“I also think that the exchange rate is unrealistic or stimulant, neither for domestic production nor for export. But since we cannot influence that we do not complain either, even though we lost EUR 20mn this year just because of the inadequate exchange rate, at the time when euro dropped from RSD 107 to RSD 97. Only a realistic exchange rate protects the domestic production and encourages export. And we are dead without export,” Bogićević concluded.