188 companies to be declared bankrupt - minister

Of some 512 companies that are currently looking for new owners through the Privatization Agency, 188 will be declared bankrupt, Zeljko Sertic has said.

Izvor: Tanjug

Friday, 02.01.2015.

15:57

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(Tanjug, file)

188 companies to be declared bankrupt - minister

Sertic told Tanjug in an interview that an action plan, due to be adopted by the government, envisages that 188 companies that employ about 5,000 workers will go bankrupt, but added that this will be "more of a legal formulation," as a majority has not had any economic activity for a long time, but has not been shut down formally.

The reason, said the minister, was that there was "no model and manner of doing so."

"Now, essentially, bankruptcy is a way to shut down those companies that are producing negative balances, and in real life don't really exist."

Asked how much money was expected from the privatizations, Sertic said the Agency does not expect "any serious privatization revenue" - except in the case of Telekom Srbija, airport concessions, "and from selling stakes in several other large state-owned companies."

"It is important to stress that the 2015 budget does not include privatization revenue.Regardless, we managed to pass a watershed budget that is very important for the future of our country," he said.

The minister explained that the government agreed with the IMF and hthe World Bank to directly invest half of the privatization money "in important infrastructure and other projects, that would increase Serbia's economic strength."

The other half "can be used to repay expensive loans, that would enable for a positive difference in the budget based on lower interest rates paid by the state," Sertic concluded.

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