PM meets with with bankers, business community

PM meets with with bankers, business community

He said he would like to see as little as only ten percent of the money go into refinancing current loans.

“I know what kind of pressure the banks will be faced with, but the most important thing to us is to boost the micro, small and medium enterprises, to encourage this sector,” Vučić said.

The aim of the talks is to jointly establish how and in what way the government can help the banking sector and how banks can begin to see Serbian economy, especially its private sector, as a precondition for their making progress and earning a profit, he said.

“The easiest thing to do today is speak about what is bad and what is wrong,” Vučić observed and pointed out that it is important and good to talk and see what can be done through joint efforts.

The prime minister said that the government will postpone the adoption of measures aimed at helping the recovery of the Serbian economy until Thursday, the reason being to hear opinions and suggestions from the banking sector, representatives of foreign investors, the construction industry and local businessmen that he will also meet with today.

He stressed that the goal is to provide the banks with a larger profit and at the same time ensure that the economy can benefit from that and get stronger.

Vučić expressed the hope that the banks would prevent associated companies to “snatch the money” like it used to happen in the past.

It was only last year that the government placed EUR 330 million into the real sector of through subsidized loans, he said.

The prime minister announced that the government will discuss with National Bank of Serbia officials about what the central bank can do, and also talk about its key policy rate, linked to the coming fiscal consolidation.

Finance Minister Lazar Krstić said at the meeting that he hopes this is just the first in a series of meetings with representatives of the banks and the economy, adding that no isolated measure can solve problems by itself, and that most of the measures are pushed through the banking sector.

The banking sector is an essential tool for improving the economic situation, said Krstic.

The finance minister said that it is also time for debate on non-performing loans as enterprises in trouble need to be helped, and this is conditional on exchange of opinions with representatives of the banks and the economy.

Subsidized loans

Bank officials said at Monday's meeting with Serbian Prime Minister Aleksandar Vučić that the real sector could be offered subsidized loans in dinars with an interest rate of most likely five percent and long-term loans in euros with an interest rate of three percent.

The talks were open and focused on concrete issues, bankers told reporters, announcing another round of talks with the government.

Slavko Carić, chairman of the Executive Committee of Erste Bank said on Monday that this was the first time bankers had such open and concrete talks with officials of the government and the National Bank of Serbia, adding that he believes that this is a great start.

Asked what he proposed to the prime minister, Carić said that the proposal referred to long-term loans in euros, rather than only subsidized loans in dinars as it was proposed originally.

Carić said that the initial proposal was that the interest rates for the loans in dinars should stand at five percent, adding that his proposal that the interest rates for the loans in euros should stand at three percent has been taken into consideration.

Draginja Đurić, chairperson of the Banca Intesa Executive Committee, told Tanjug that banks appear positive, adding that it is yet to be seen to what extent the banks will keep this positive viewpoint in their policy later on.

“For now, it is proposed that loans should be granted to the period of one year and a half and the grace period of six months, and I prefer the loans in dinars,” Đurić said.

Vladimir Čupić, chairperson of the AIK Bank Executive Committee, said that the meeting was very fruitful, and it touched on the regulations in the domain of the National Bank of Serbia and the Ministry of Finance.

GoranPitić , chairperson of the Societe General Bank Managing Committee, believes that it is important to set deadlines, adding that the agreement has been reached on certain moves which would affect the measures for increasing liquidity and which refer primarily to removal of obstacles that are burden for the banks such as mandatory reserves.

The next meeting will table the laws on bankruptcy, executive procedure, mortgage and the law on pledge, Pitić said.

“I believe that the prime minister and his assistants have realized that the renewal of trust is crucial. The interest rates are not the greatest problem of the Serbian economy, but it is rather the trust that what is being done can stimulate the investment activities,” Pitić said.

"Most difficult"

Prime Minister Aleksandar Vučić stated on Monday that he was satisfied with the talks with representatives of the banking sector, and added that the meeting with construction industry workers was "the most difficult for him due to the exceedingly poor state in the area."

”The meeting was very difficult for me… We will try to help as much as we can and we will have to change a lot of things,” Vučić said addressing reporters after the Monday series of talks with representatives of banks, foreign companies and the construction industry sector.

Vučić said that the talks with directors of foreign companies in Serbia defined the tangible moves for improvement of the investment climate in the country.

These talks so covered the incentives for investors and a plan consisting of five points was also prepared in terms of the measures for countering gray economy, and its implementation should bring EUR 500-700 million, he said.

The prime minister went on to begin the meeting with leading local businesspeople , including owner of Delta Holding Miroslav Mišković, who is currently on trial on corruption charges.

Asked if Miskovic attended the meeting, Vučić said that this was "not surprising because Mišković's three companies rank among top 200 according to tax payments in Serbia."

”The courts are doing their job and they will voice their stand on his guilt and as for the tax payments, he deserved a place among top 200 businesspeople who have secured their presence here,” Vučić said.