Wednesday, January 27, 2010

Dinar dropped by 7.6% against Euro in 2009

Belgrade, Jan. 24, 2010 (Serbia Today) - Dinar dropped by 7.6% against Euro in 2009 - the National Bank of Serbia announced today (January 18, 2010).

According to the announcement, Dinar dropped by 1.2% in December, while 1 billion EUR were traded in the interbanking foreign currency market, which is 570.6m EUR than in November. “ That was, also, record trading in 2009. Total of 7.1 billion EUR were realized in the interbanking trade last year “ - it is stated in the announcement by NBS.

In order to prevent excessive daily oscillations of the exchange rate and ensure undisturbed and efficient functioning of the financial market under the conditions of high Dinar liquidity of the banking sector, NBS organized two auctions in December and sold total of 100.5m EUR on those occasions.

Monday, January 25, 2010

Zemun - Borča bridge closer to construction

Belgrade, Jan. 21, 2010, (Serbia Today) - Representatives of the Institute of Transportation CIP and China Road and Bridge Corporation will sign a preliminary contract today (January 18, 2010) for the design concept of the Zemun-Borča bridge and its connections. The new bridge across the Danube will be a regional link between Belgrade and South Banat and will connect Corridor 10 with Corridor 4 and Romania.

The document will be signed by General Director Milutin Ignjatovic and Director Yao Hajdong in the presence of Verica Kalanović, the Minister of National Investment Plan, Belgrade Mayor Dragan Đilas and Ren Ji, the Economic Adviser of the Embassy of People's Republic of China. Because of tits importance the City of Belgrade and the Republic of Serbia will participate cooperatively in this project.

The new bridge will be 1.5 km long, 29.10 meters wide and 22.8 meters high, with six traffic lanes and adjoining pedestrian-bicycle paths. Feeder roads and interchanges will be 21.6 km long. The new bridge will move freight traffic from Belgrade's core, and also enable development of the city on the other side of the river. The preliminary contract is worth EUR 1.9m, and will be completed in the next two months. The project is estimated to cost EUR 170m and to be completed by the end of 2013. Financing for the project will be provided by the Export-Import Bank of China in amount of about EUR200m, at 3% interest repaid over 15 years.

Saturday, January 23, 2010

Veropoulos plans construction of trade center at 6,000 square meters in Belgrade's settlement Žarkovo

Belgrade, Jan. 19, 2010, (Source: eKapija) - Greek trade company Veropoulos announced that it planned to start construction of small trade center in Belgrade in 2010. That company has, so far, invested 47m EUR in development of Serbian market.
- This year we plan to start construction of a mini trade center at about 6,000 square meters, with a supermarket and accompanying contents, in Žarkovo - the Director General of Veropoulos in Serbia, Vasilis Kakagiotis, told Beta agency.
He expressed expectation that the company will be enabled to finish construction of Vero market in Voždovac this year, which started over two years ago.
- We plan to expand our retail network within the next five years by opening another 15 to 20 retail facilities in Serbia and to employ 1,600 people - said he.
According to his words, that means that, if the plans are met, total investment will reach the amount of about 120m EUR.
- We intend to keep investing in Serbia and building new facilities, which will lead to creation of new jobs in this difficult time, not only in Belgrade, but also all around the country - said Kakagiotis

Subotica Dairy to get export number for EU countries soon

Belgrade, Jan. 19, 2010, (Serbia Today) - The Subotica Dairy may soon get the export number for the countries of European Union and, in that case, it will be the only in the country that, by introducing all required standards, meets the new conditions for export to that market.

As people from the Dairy told newspaper Dnevnik, the representatives of the EU Veterinary Commission are coming on February 15th to check the capacities and standards.

“We have obtained the export permit from our authorized ministry, and European Commission will evaluate the competency of our inspection and services. Its representatives will stay for three days to check our facilities and then give an estimate on whether we can export our products or not”- says Dragan Šašić, the Subotica Dairy's Technical Director.

This year Dairy plans to purchase 59m liters of milk, 1m more than in 2009. That additional million will be collected through formation of between 25 and 30 small family farms, which produce top-quality milk, so that the quality of milk as a raw material will be improved. That is of special significance to the Dairy because of its plan to get the export number for the EU countries on the basis of current quality and the standards it meets.

Subotica Dairy exported feta cheese to the US market on two occasions last year, and that it intends to resume that export in 2010

Wednesday, January 20, 2010

EBRD delays approval of loan to "Srbijagas"

Belgrade, Jan. 16, 2010, (Serbia Today) - The European Bank for Reconstruction and Development (EBRD) has not yet approved a loan of 150m EUR to "Srbijagas" because the EBRD asked to have control of how its money would be spent and access to future investments, according to an article in Politika" on January 13, 2010. Citing an unnamed source, the Belgrade newspaper wrote that the loan had not been granted at the meeting of the Board of Directors on January 12th because EBRD insisted that that money could not be invested in the joint projects of Serbian "Srbijagas" and Russian “Gazprom.” The source said that it was asked earlier that certain part of the money be invested in completion of construction of underground gas storage Banatski Dvor, but the loan had not been granted because Russian "Gazprom" was included in the whole business.

Previously the purpose of the loan had been to connect the gas pipeline network of Serbia with neighboring countries; to construct a new underground gas storage facility; and to purchase gas for storage in Hungary. But on January 11, 2010, the official EBRD website stated that through the proposed loan the EBRD has obtained the commitment of "Srbijagas" “(I) to purse organizational and financial restructuring and (ii) to increase standards of transparency, corporate governance and business conduct.” In addition the website reports that the EBRD has obtained the commitment of the Government of Serbia “to accelerate reforms in the energy sector aimed at (I) achieving harmonization with relevant EU Directives, (ii) enhancing the independence of the energy regulator, and (iii) supporting the unbundling of the Company’s natural gas transmission, distribution and trading activities.”

Negotiations with EBRD on the loan should be resumed within the next few days, and the new date is Tuesday, January 26th.

Monday, January 11, 2010

Construction of power plant in Užice approved


Uzice, Jan. 06, 2010, (Serbia Today) - The City Assembly of Užice has recently approved development of an electric power plant that will be fueled by burning waste at the nearby regional sanitary landfill Duboko. "Electric Power Company of Serbia" (EPS) will be a partner with the City in the innovative project. Formal approval by the City was preceded by a Memorandum of Understanding signed in October 2009, by the Minister of Energy Petar Škundric, by the Mayor of Užice Jovan Marković, and by the CEO of EPS, Dragomir Marković,
Disposal and burning of about 250 tons of public waste daily from Užice and eight surrounding municipalities is expected to produce between 7 to 10 megawatts of electricity. Construction of the power plant should cost between 30 and 60m EURs.
Minister Škundric has said that the waste burning power plant would not be a “danger to the environment or people's health". The product of the burning process will be a small quantity of carbon-dioxide and solid matter that will later be used for construction of roads. He also pointed out that foreign investors were interested in the project so that the investment would not be a big financial burden for the City and EPS.

Friday, January 8, 2010

Serbia is the new presiding member of the CEFTA


Belgrade, Jan. 04, 2009 (Serbia Today) – Serbia has taken over as a presiding member of the Central European Free Trade Agreement (CEFTA) for 2010 starting January 01, in annual rotating chair by the member countries.
CEFTA was signed on Dec. 19, 2006 by Serbia, Croatia, Moldova, Macedonia, Albania, UNMIK/Kosovo, Montenegro, Romania, and Bulgaria.
Member countries hope that CEFTA will enable them to develop mutual trade, and boost exports of goods in various industrial sectors.
According to research done by Serbian Chamber of Commerce, Serbian export to the CEFTA countries for the past several years has been stable and accounts for 32% of the total value of the country’s export. On other side, the imports from the CEFTA countries account only for 8% of the total import. Nevertheless, the positive balance of $1.17 billions in trade from Jan. to Oct. 2009 proves that trade with CEFTA countries is very attractive to Serbian exporters.

Tuesday, January 5, 2010

"New Frontier Holding" became owner of Belgrade-based IT company "Saga"



Belgrade, Dec. 31, 2009 (Serbia Today) - SAGA is joining as 6th company New Frontier Group. New Frontier Holding has gained a majority interest in SAGA d.o.o., a Belgrade, Serbia headquarter based IT solutions and system integrations company with subsidiaries in Bosnia&Hercegovina, Macedonia and Montenegro.
New Frontier Holding signed on Tuesday 8th December 2009 a definitive contract with the current owners, who will remain as shareholders and executive management of the company.
Branislav Vujovic, CEO of New Frontier is pleased that SAGA joins New Frontier Group. “This is the next milestone in the New Frontier Group development which demonstrates our capability to pursue strategic objectives by extending our geographical coverage and increasing group revenue despite the difficult economic conditions. SAGA employees, with their knowledge and expertise, are an important addition to the group, and they are widening our competences and capabilities to deliver true business value for our clients, especially in the area of Telecommunication solutions.”
Goran Djakovic, CEO of SAGA is excited to join with his team the New Frontier Group: “The partnership with New Frontier Holding is a very important strategic milestone for Saga. After 20 years, Saga has become Serbia’s number one ICT services company. After expanding our operations in Montenegro, Bosnia & Herzegovina and Macedonia, we have decided to expand our reach and portfolio with this partnership, which can only benefit to everyone involved: NFH, Saga and specifically our clients. With our combined portfolio, geographical coverage and know-how, our clients’ needs will be met with ease – and with pleasure, as always.”
SAGA will continue to operate under the SAGA brand and retain its identity. As part of the transaction New Frontier Holding signed a long term agreement with the current owners and the executive management team, who will remain fully in charge of the further development of the company. SAGA and New Frontier Group will work together to pursue the portfolio and client expansion strategy within the Adriatics region.
New Frontier Holding GmbH is a registered Austrian company, founded August 23rd, 2006. The objective of New Frontier Holding is to build a strong IT group across Central and Eastern Europe and is following a buy and build strategy. NFH is planning to invest into 15-20 companies in the next 3-5 years, whereby the business focus is on companies with a strong software, services and solutions focus.
New Frontier Group includes by end of 2009 six group company members: Profinit in Czech Republic and Slovakia, Cogent in Slovakia and Czech Republic, XAPT in Hungary and US/Canada, Grepton in Hungary, Romsys in Romania and SAGA in Serbia, Bosnia&Hercegovina, Macedonia and Montenegro.

Fiat investing in Serbia




Belgrade, Dec. 29, 2009, (Serbia Today) - Italian auto giant Fiat will pay today EUR 98 million as an initial installment in a new joint venture with the Republic of Serbia, it was reported yesterday at a press conference held by the Mayor of Kragujevac.
Fiat will ultimately invest a total of EUR 800 million for a 67% interest in “Fiat Auto Serbia” (FAS). The Serbian government will invest EUR 250 million, mainly for modernization of infrastructure, for a 33% interest in the joint venture.
Kragujevac is where Serbia’s largest car manufacturer “Zastava” is located. Decades of underinvestment in infrastructure and new technology had brought this company to the brink of collapse.
Since most workers living in the Kragujevac region have been employed by Zastava, the Serbian government did everything it could to save Zastava from bankruptcy and to maintain the industrial complex in Kragujevac.
It is expected that the construction of the new production facilities in Korman Polje near Kragujevac will start soon. There are reports that Fiat has very ambitious plans for “Fiat Auto Serbia” including the production of two new models for the EU market.