Serbia must restructure or liquidate state companies - IMF
It is crucial for fiscal stabilization in Serbia that state enterprises be restructured into becoming sustainable, says James Roaf.Source: Beta
Alternatively they should be liquidated, in order to prevent the accumulation of losses, Beta quoted the chief of the International Monetary Fund's mission in Serbia as telling the Danas daily.
"In cases like Resavica or RTB Bor they are companies located in less developed regions, so the restructuring plans have to be gradual and take welfare implications into consideration. Support to these companies in the future should be secured through transparent budget subsidies, instead of the accumulation of debts. The government promised to deal with the problems of these companies," Roaf said.
He added that a proper analysis should be done to determine which parts of the RTB were creating losses, and then close them down.
"That company needs a more professional approach to management, in order to prevent the accumulation of losses and debts, and to find ways to reduce the excess staff," Roaf said.
Commenting on the situation in Petrohemija, he said that it was under restructuring, which should lead to it no longer being a burden to the state.
"Azotara is a difficult case. It should not be subsidized in the future. We agreed that gas should only be delivered to them on the basis of full payment in advance," Roaf stressed, adding that Petrohemija and Azotara could generate costs which far exceed their economic benefit.