Minister: More than 24 controversial privatizations

BELGRADE Serbian Minister of Economy Sasa Radulovic says that all disputed privatizations in the country will be reexamined - and that there are "more than 24." That is the number which is currently being investigated. Minister: More than 24 controversial privatizations Radulovic was addressing a conference dubbed "Restart" at the Ministry of Economy, dedicated to a new model of privatization and bankruptcy, when he said that the ministry will cooperate with state authorities, who should establish whether abuses happened in the sale of companies in Serbia. He said that privatization in Serbia was "done poorly" and that a large number of companies are now in trouble because new owners sold their property, and took profits out of Serbia through related companies in the country and in offshore destinations. "We got owners and managers who, instead of developing privatized companies, in many cases conducted their business through related entities and pulled money out of those companies, burdened their property with loans, and did not spend those loans appropriately. Now these companies are in trouble," said the minister. According to Radulovic, "the problem for the society" is that there is no growth and no employment. The state will help, as he said, "link" years of service of employees in firms that got "bad owners" through privatizations. (Tanjug, file) Lower interest rates as support to economy The Ministry of Economy is considering a way to support economy through reduction of interest rates and greater availability of loans, Minister of Economy Sasa Radulovic stated on Friday. "We are working with the EBRD on the models of a guarantee fund that will bear part of the risk together with the banks " Radulovic said at the conference dubbed Restart held at the Privatization Agency. He said that the interest rates in Serbia have to be lower, adding that at the moment the authorities are analyzing why interest rates are so high. "We also have talks with the investment funds, which would raise the issue of investments in the capital rather than only approval of loans," Radulovic said. He underlined that the banks should give loans, while the government should create a framework for the interest costs to decrease, and added that the Ministry is working on the framework, which will be the main model for assisting the economy. Radulovic said that in future instead of providing assistance from the Development Fund in the form of subsidized interest rates, there should be a new model of assistance which would be available to all. "The funds which will be invested by the government will be multiplied at least five times with the funds that the banks already have but they do not have where to invest," the minister said. Radulovic said that in the previous period a lot of money was spent on subsidies without any control and investment effects. He said that the Development Fund had EUR 2 billion at disposal, but that the government has financed various things through the Fund so the bad loans exceeded 60 percent. The Development Fund should not be a charity institution, but rather it should focus on the development of economy, Radulovic said. Dusan Pavlovic, advisor to the Minister of Economy, said that the Development Fund does not have clear criteria why it gave loans to certain companies, and it also does not have a risk assessment methodology. "This has to change if the Fund wants to remain operational," Pavlovic underlined. Beta Tanjug

Minister: More than 24 controversial privatizations

Radulović was addressing a conference dubbed "Restart" at the Ministry of Economy, dedicated to a new model of privatization and bankruptcy, when he said that the ministry will cooperate with state authorities, who should establish whether abuses happened in the sale of companies in Serbia.

He said that privatization in Serbia was "done poorly" and that a large number of companies are now in trouble because new owners sold their property, and took profits out of Serbia through related companies in the country and in offshore destinations.

"We got owners and managers who, instead of developing privatized companies, in many cases conducted their business through related entities and pulled money out of those companies, burdened their property with loans, and did not spend those loans appropriately. Now these companies are in trouble," said the minister.

According to Radulović, "the problem for the society" is that there is no growth and no employment.

The state will help, as he said, "link" years of service of employees in firms that got "bad owners" through privatizations.

Lower interest rates as support to economy

The Ministry of Economy is considering a way to support economy through reduction of interest rates and greater availability of loans, Minister of Economy Saša Radulović stated on Friday.

"We are working with the EBRD on the models of a guarantee fund that will bear part of the risk together with the banks " Radulović said at the conference dubbed Restart held at the Privatization Agency.

He said that the interest rates in Serbia have to be lower, adding that at the moment the authorities are analyzing why interest rates are so high.

"We also have talks with the investment funds, which would raise the issue of investments in the capital rather than only approval of loans," Radulović said.

He underlined that the banks should give loans, while the government should create a framework for the interest costs to decrease, and added that the Ministry is working on the framework, which will be the main model for assisting the economy.

Radulović said that in future instead of providing assistance from the Development Fund in the form of subsidized interest rates, there should be a new model of assistance which would be available to all.

"The funds which will be invested by the government will be multiplied at least five times with the funds that the banks already have but they do not have where to invest," the minister said.

Radulović said that in the previous period a lot of money was spent on subsidies without any control and investment effects.

He said that the Development Fund had EUR 2 billion at disposal, but that the government has financed various things through the Fund so the bad loans exceeded 60 percent. The Development Fund should not be a charity institution, but rather it should focus on the development of economy, Radulović said.

Dušan Pavlović, advisor to the Minister of Economy, said that the Development Fund does not have clear criteria why it gave loans to certain companies, and it also does not have a risk assessment methodology.

"This has to change if the Fund wants to remain operational," Pavlović underlined.