EBRD interested in Telekom, airport, Dunav Insurance

EBRD interested in Telekom, airport, Dunav Insurance

EBRD's activities will depend on the Serbian government's decision on the future of these public companies, he said.

Telekom needs money for capital investments, and we are ready to consider a capital increase or loans, Patrone told a press conference also attended by EBRD President Suma Chakrabarti.

Patrone said that the EBRD is ready to be a co-investor with other strategic investors, buy shares, finance a purchase of shares by a third party, or secure capital if needed.

Commenting on the privatization of the Serbian electric power company EPS, announced by Prime Minister Aleksandar Vučić, Patrone said that it is a long-term objective, and that Telekom Srbija, Belgrade's Nikola Tesla Airport and the Dunav insurance company can be privatized within a shorter period of time.

The EPS, the Serbian power grid company EMS, Srbijagas, Serbian Railways and other public and utility companies are a different group of companies and require deep restructuring before strategic investors are sought for them, Patrone said.

The EBRD's role is to continue to support those companies by securing capital, as well as by providing loans, as it is doing now, he stressed.

The European Bank for Reconstruction and Development will strengthen credit lines for small and medium-sized enterprises (SMEs) and assist Serbia in building local infrastructure, it was also announced in Belgrade on Friday.

The Serbian Ministry of Public Administration and Local Self-Government has announced after a meeting between Minister Kori Udovički and EBRD President Suma Chakrabarti that small and medium-sized enterprises sustained major damage in the severe flash floods and that was the reason why the officials discussed the strengthening of credit lines for those firms.

A statement notes that Serbia must become more capable of absorbing money of international financial organizations as there are funds that the EBRD had granted, which are yet to be used, and can hardly be disbursed before autumn.

The meeting also addressed ways in which the EBRD could assist in building local infrastructure.

"The priorities lie in the recovery and normalization of citizens' lives, infrastructure and economic recovery, and the EBRD can assist in building local infrastructure," the release notes.

Chakrabarti said that the EBRD feels that it is its responsibility and obligation to help in the misfortune that hit Serbia.

The recognition of needs and urgent repair of the damage constitute a priority, he said, underlining that representatives of the bank will have a meeting to discuss the matters on Friday.

The EBRD president underlined that there are two ways of backing for Serbia, in short-term - recovery and rebuilding, and in the long run - during reforms so as to ensure that Serbia's economy is more sustainable, the release notes.

Chakrabarti said that in the long run it is the bank's role to engage in the building of better flood defenses, and attracting investors so as to make sure that Serbia advances toward the EU more quickly, the ministry said.