PM: Serbia will settle satellite debt in time

Prime Minister Mirko Cvetkovic says Serbia will pay before the deadline the satellite lease money it owes to an Israeli company. There is money in the budget set aside for this purpose, Cvetkovic said in Belgrade on Tuesday. PM: Serbia will settle satellite debt in time The agreement signed with the Israeli side after negotiations sets the February 1 deadline for the payment. "If we fail to live up the deadline, the deal would fall through and we'd have to pay a much higher figure than the one agreed on," Cvetkovic warned. The Israeli company will now get EUR 27.85mn. The original figure was EUR 36mn, after ImageSat sued Serbia for breach of contract and won the case. Speaking about the price of electricity, Cvetkovic said that a new hike will likely be reviewed at the end of winter, "when everything will be done to achieve a balance between the consumers and the EPS (Serbia's state-run power company)". "At this point the price of electricity in Serbia is the lowest in Europe," said the prime minister. "On the one hand it has a negative influence on the functioning of EPS, and on the other it sends a bad signal to consumption." However, Cvetkovic conceded that "certain categories of citizens live in difficult conditions", and for this reason, "it is necessary to weigh the two opposing goals - obtaining a company that has a sufficient investment potential (EPS) without burdening the citizens too much". Mirko Cvetkovic (Beta, file)

PM: Serbia will settle satellite debt in time

The agreement signed with the Israeli side after negotiations sets the February 1 deadline for the payment.

"If we fail to live up the deadline, the deal would fall through and we'd have to pay a much higher figure than the one agreed on," Cvetković warned.

The Israeli company will now get EUR 27.85mn. The original figure was EUR 36mn, after ImageSat sued Serbia for breach of contract and won the case.

Speaking about the price of electricity, Cvetković said that a new hike will likely be reviewed at the end of winter, "when everything will be done to achieve a balance between the consumers and the EPS (Serbia's state-run power company)".

"At this point the price of electricity in Serbia is the lowest in Europe," said the prime minister. "On the one hand it has a negative influence on the functioning of EPS, and on the other it sends a bad signal to consumption."

However, Cvetković conceded that "certain categories of citizens live in difficult conditions", and for this reason, "it is necessary to weigh the two opposing goals - obtaining a company that has a sufficient investment potential (EPS) without burdening the citizens too much".