Previous loans to be repaid with Russian money

BELGRADE The Russian loan for Serbia will be used for repayment of old loans which were taken out under less favorable conditions, Mladjan Dinkic has said. The Russian loan for Serbia will be used for repayment of old loans which were taken out under less favorable conditions, Mladjan Dinkic has said. Previous loans to be repaid with Russian money Serbia will repay USD 400 million to the London Club as soon as this month, and the next installment of the same amount will be paid off in the fall, Dinkic told B92. “It is important that we stopped the public debt increase,” the minister said, noting that the public debt "will remain" at 59 percent of GDP by the end of this year. Dinkic further said that one of the two blast furnaces at the Zelezara Smederevo steel mill will restarted next Monday. The production will be restored, and 5,000 workers will return to the factory, he said, adding that the government has already arranged the sale of the entire steel production - some 70,000 tons each month. The losses will amount to USD 20mn at the most, the minister stated. He also noted that the goal of the government was to find a strategic partner for Zelezara Smederevo, adding that talks were underway with "one major European company." A tender for a strategic partner for the steelmaker has been extended four times.The last deadline expired on February 28, and the only potential buyer, Uralvagonzavod from Russia, did not submit its offer. Dinkic also spoke about the export of Fiat's vehicles assembled in Serbia to Russia under a customs-free regime. According to the minister, President Vladimir Putin told a visiting Serbian delegation recently that a limited number of Fiat's vehicles could be imported to Russia under these conditions, and that Serbia would have to import an equal number of cars made in Russia in return. Serbia, Dinkic continued, requested to export 10,000 Fiat vehicles to Russia this year, 50,000 next year, and 100,000 more a year after that. "We have a promise about the first quota," he explained. Dinkic went on to say that the state was not subsidizing the sale of Fiat's cars in Serbia, but that it was giving the Italian company money for new jobs it creates - "and it was their decision to redirect that money to subsidize car sales." "We are helping Fiat give jobs to 1,400 people in Kragujevac, and what they do with the money is their business. Subsidies are part of the arrangement between Serbia and Fiat, so the state must give EUR 15mn (to Fiat) for 1,4000 new jobs," he said. Without these subsidies, "Fiat would never open a plant in Serbia," noted the minister, and added that his message to importers who complained that Fiat was privileged was "to tell their mother companies to also build factories in Serbia, and they too will get incentives." (Tanjug, file) B92 Tanjug

Previous loans to be repaid with Russian money

Serbia will repay USD 400 million to the London Club as soon as this month, and the next installment of the same amount will be paid off in the fall, Dinkić told B92.

“It is important that we stopped the public debt increase,” the minister said, noting that the public debt "will remain" at 59 percent of GDP by the end of this year.

Dinkić further said that one of the two blast furnaces at the Železara Smederevo steel mill will restarted next Monday.

The production will be restored, and 5,000 workers will return to the factory, he said, adding that the government has already arranged the sale of the entire steel production - some 70,000 tons each month.

The losses will amount to USD 20mn at the most, the minister stated.

He also noted that the goal of the government was to find a strategic partner for Železara Smederevo, adding that talks were underway with "one major European company."

A tender for a strategic partner for the steelmaker has been extended four times.The last deadline expired on February 28, and the only potential buyer, Uralvagonzavod from Russia, did not submit its offer.

Dinkić also spoke about the export of Fiat's vehicles assembled in Serbia to Russia under a customs-free regime.

According to the minister, President Vladimir Putin told a visiting Serbian delegation recently that a limited number of Fiat's vehicles could be imported to Russia under these conditions, and that Serbia would have to import an equal number of cars made in Russia in return.

Serbia, Dinkić continued, requested to export 10,000 Fiat vehicles to Russia this year, 50,000 next year, and 100,000 more a year after that. "We have a promise about the first quota," he explained.

Dinkić went on to say that the state was not subsidizing the sale of Fiat's cars in Serbia, but that it was giving the Italian company money for new jobs it creates - "and it was their decision to redirect that money to subsidize car sales."

"We are helping Fiat give jobs to 1,400 people in Kragujevac, and what they do with the money is their business. Subsidies are part of the arrangement between Serbia and Fiat, so the state must give EUR 15mn (to Fiat) for 1,4000 new jobs," he said.

Without these subsidies, "Fiat would never open a plant in Serbia," noted the minister, and added that his message to importers who complained that Fiat was privileged was "to tell their mother companies to also build factories in Serbia, and they too will get incentives."