NBS: Ratio between supply and demand responsible for dinar sliding

Belgrade 25. May 2010. (Serbia Today) - President of the National bank of Serbia Council Dejan Šoškić says that a reason for the dinar sliding to over 100 for one euro is the ratio between supply and demand. The candidate for the next central bank governor added that Serbia has no competitive export-oriented economy and is not attractive enough for direct foreign investments. Šoškić believes that there is a possibility that the relationship between the dinar and the euro in the domestic market is partly caused by the expectation that the crisis epicenter in the eurozone will have negative effects on its immediate surroundings. In an interview published by the Belgrade-based daily Vecernje Novosti, Šoškić assessed that a more "aggressive" defense of the exchange rate involving intervention from foreign currency reserves would give short-term results, and would also be expensive for the country and lead to additional debt. "A more aggressive defense of the exchange rate would possibly make sense if it would remove the short-term and significant imbalance in the foreign exchange market, caused by speculative or psychological reasons. I believe that, so far, the movements on the foreign currency market have been neither unexpected nor alarming.” Šoškić pointed out that banks should not accrue further foreign debt, adding that Serbia's indebtedness is growing rapidly and that the public debt level should not increase any more. He also told the newspaper that he agreed with Prime Minister Mirko Cvetković who said recently the exchange rate was not the problem, but rather the euroisation and the “hidden two-currency system”.  Šoškić expects the current talks with IMF officials concerning the ongoing stand-by arrangement worth a total of EUR 2.9bn to be successful, and says that if Serbia were to increase public sector salaries and pensions, the country would “likely lack money for planned public investments in infrastructure”.

Summit manufacturer of parts for automobiles 25th May in Belgrade

 
Belgrade, May, 24. 2010 (Serbia Today) – International set of manufacturers of parts for the auto- industry will be held in Belgrade on 25 May. More than 130 leading companies in the area of automobile industry from 17 countries will take a part on the summit. Advisor to the Ministry of Economy Aleksander Ljubic said on Thursday that the goal of the summit is to encourage the development of automobile industry in Serbia and investment, as well as job creation in Serbia. He added that some of the advantages of Serbia are high-quality workers, a strategic partnership with Fiat, agreements on free trade and access to market of nearly 800 million people, encouraging government action to create new jobs. Fair organizers are the Ministry of Economy and Foreign Investment Agency.

NBS: Recovery of Serbian economy

Belgrade, May, 22.  2010 (Serbia Today)  National Bank of Serbia (NBS) estimated  that at the end of this year and early next year inflation will be about five percent, while the growth of gross domestic product (GDP) will be about 1.5 percent.  Vice governor of NBS Bojan Markovic said that inflation rate in April was 0.6 percent, while the prices from April 2009 to April 2010 increased by 4.3 percent.  In the second quarter there is expected further decline in inflation (about 4 percent) 
while the rest of the year will have the projected level of 6 plus / minus 2 percent. In 2011, inflation will be about 4.5 percent according to projections NBS. According to Markovic, this year it expects modest growth in GDP 1.5 percent due to slow release of the world economy from recession and low domestic demand. "We estimate that growth in investment and net exports will give the greatest contribution to GDP growth in the future. Public and personal consumption will continue to decline, "he said.  In the first quarter of 2010 for the first time since the beginning of the crisis Serbia recorded growth of GDP by 1 percent compared to the same period last year.  Net export growth for 13.9 percent while import is reduced to 4.8 percent. NBS has estimated that a significant recovery in economic activity could be expected in 2011, when it is projected to grow three percent of GDP.

Finance Minister: Speculators depreciate dinar

Belgrade, May, 22. 2010 (Serbia Today) - Minister Diana Dragutinovic said on Wednesday that the exchange rate changes were the consequence of “speculative strikes”, and that the National Bank of Serbia (NBS) should continue to prevent sudden changes of the dinar exchange rate. In a statement published by Blic newspaper today, she underscored that the amount of foreign exchange reserves guarantees that the domestic currency will be defended from speculative strikes.  Asked what the state would do to prevent a further fall in the value of the dinar, Dragutinović said that “the state will contribute to an increase of foreign currency offer in the country by drawing the credit funds for the construction of infrastructure, which would stabilize the dinar rate.” The changes of the rate so far have not been dramatic, and in respect of the country's economic status they may be evaluated as desirable, the minister said.  “The changes of the dinar rate in the past year and a half were mainly gradual, and both the real sector and citizens had enough time to adjust to the new rate. Serbia's foreign trade and payment balance show significant improvement signs, which did not happen by itself. The dinar depreciation, as well as the reduction of the domestic expenditure, particularly that of the state, contributed to that”, said Dragutinovic 

Dramatic currency decrease

Belgrade, May, 21. 2010  (Serbia Today)  Serbian currency has decreased once again, making one euro worth over 100 RSD. It is the smallest value of Serbian dinar since the EU currency was introduced. According to the National Bank of Serbia (NBS), as of May 18, the EUR is worth 101,45 RSD. National Bank of Serbia (NBS) has sold 50 million euro in the interbank foreign exchange market to prevent the excessive daily exchange rate fluctuations. Since the beginning of the year, the Central Bank has sold 796,5 million EUR. The domestic currency was at its strongest this year on January 4, when the official exchange rate was RSD 95.97 per euro.

Negotiations with IMF begin in Belgrade, PM: Crisis “statistically and formally” over

Belgrade, May, 20. 2010 (Serbia Today) - Fresh negotiations between Serbian officials and the International Monetary Fund (IMF) mission relating to the fourth revision of the stand-by agreement have started in Belgrade. At today's meeting they have analyzed the current economic situation and macroeconomic indicators for the first quarter. In the next two weeks they will discuss the further implementation of agreed measures. Immediately before the meeting Prime Minister Mirko Cvetkovic said that the crisis in Serbia was “statistically and formally” over. Cvetkovic pointed out that the real economic recovery in Serbia would come when the economy grows by a more sizable margin. He said that a high unemployment rate remains among the country's biggest problems, despite the fact that its growth had slowed. Cvetkovic reminded that the Serbian economy was forecast to gain two percent in 2010, while economic expansion should reach three to 3.5 percent in 2011.  In the talks with the IMF, the Serbian government will be also speaking about increasing wages and pensions. It will however, be considered from the point estimates of economic trends by the end of the year, as well as fiscal effects, the government announced.
 

Milosavljevic : Serbia has reason for optimism

 
Belgrade, May, 18. 2010 (Serbia Today) - Even though the economic crisis is not over, Serbia has a reason to be optimistic, climes  Serbian trade Minister Slobodan Milosavljević.  “The average citizen does not feel it yet, but the trends are positive and, finally, at the end of 2010, we can expect the first improvements in standard and buying power,” Milosavljević told Belgade daily Večernje novosti.  He noted that decrease in prices can be expected, but not in seasonal food at markets, adding that it is important that the prices of electricity and communal services are stable after the March increases.  As far as the price of fuel is concerned, he said that they are expected to decrease in the summer in order to avoid budget losses, since up to a million vehicles will pass through Serbia in the vacation season, and most avoid filling up in Serbia because the gas prices are the highest in the region.  He said that if VAT were increased, all positive trends would be nullified, adding that buying power would be decreased.  Milosavljević added that opinions are split within the government regarding an unfreezing of wages in the public sector and pensions. He believes that the time is not right yet. The minister also said that he does not believe that the crisis in Greece will have any major effects on Serbia. “One potential danger comes from Greek banks in Serbia, though they are stable and have a more quality placement on the market than they do in Greece and Bulgaria. NBS and the government have plans in case of problems with the banks, in order to secure liquidity and to avoid citizens from having problems,” he said.

Serbia is to pay 36million euros for a satellite

 
Belgrade, May, 17. 2010 (Serbia Today) – Serbia will have to pay 36million euros to an Israeli company, in damages for not complying with an agreement for renting a satellite.  Serbia will also pay RSD 1.38mn for the lost case with which it questioned the authority of the International Arbitration Court in Paris and its decision to award the Israeli company the damages.  The contract with Israeli company Image Set signed former Defence Minister Prvosalav Davinic 2005th. In 2008, the court in Paris awarded ImageSet the money, but Serbia decided to take the case to a regular court in London. The State Public Attorney's Office stated that Serbia took its case to London in order to use all possible legal methods to circumvent the decision of the court in Paris, which ruled in Image Set's favor.  Defense Minister Dragan Sutanovac expressed the hope that the Serbian judicial system will call to account those who are liable in this case. He said that the Israeli military industry is among the best in the world, and that the Serbian Army would have readily converted the money for a military equipment, but “it is uncertain whether there is such option”. The Serbian Supreme Court stated on April 16, 2009 that an investigation into the deal made five years prior by former Defense Minister Prvoslav Davinić would begin. He is suspected of abusing his position in forming the contract with the Israeli company for the use of the satellite. The contract was worth EUR 45mn. 

There are currently 24 companies striking in Serbia, according to data of Serbian Ministry for Labor and Social Policies.

Belgrade, May, 17. 2010 (Serbia Today) - Deputy Minister Radmila Bukumirić - Katić reminded that that 2009 ended with 80 ompanies striking at the same time. Bukumirić-Katić  doesn’t  claim that  decreasing  number of strikes  means  that the workers live better now. “I think that the workers understand that the state is doing everything it can to help them and to keep as many of them employed as possible, ”Bukumirić - Katić said.  She announced that the draft law about strikes would soon be finished and presented to the public.  “I think that we will reach an agreement with unions so that it would one of the instruments for giving workers more security,” she said.

Only one bid for consultant in Telekom Serbia

 
Belgrade, May. 15. 2010 (Serbia Today) - The only bid in the tender for the adviser for the sale of state shares in Telekom Serbia, was submitted by a U.S. company “Citygroup global markets". This indicates that a Serbian state company will not attract a high price, said a consultant for foreign investments Mahmud Busatlija. He adds that now is the question of whether the bid is to stay in the game or it is a the idea of good strategy for selling. "That, unfortunately we can not know until we see whether the government chooses them and what would be their first steps in the consultation - whether to stay in this or to exceed more than 50 percent of shares for sale, which would slightly improve the cost," Busatlija said. Ministry of Finance announced that the tender committee will assess whether the technical part of the offer meets the conditions of the tender, which will be known within two weeks. In addition to 80 percent of the shares of Telekom owned by the state, the remaining 20 percent belongs to the Greek "OTE", in which Deutsche Telekom has 30 percent equity. Actually it was "Deutsche Telekom" until now mentioned as the most serious buyer of "Telekom Serbia". According to previous announcements from the Government, it is expected that the tender for the sale of shares of Telekom will be announced in the late summer or early fall.
 

Euro almost 100 dinars, foreign exchange reserves at record level, says Governor

 
Belgrade, May. 15. 2010 (Serbia Today) - In Serbia the dinar is weakening against the euro, and European currency has reached a value of nearly 100 dinars. On the other hand outgoing National Bank of Serbia (NBS) Governor Radovan Jelasic said that the country's foreign exchange reserves are at a record high of EUR 11bn. Ahead of talks with the International Monetary Fund, Jelasic said that in those talks, there will be no discussion of withdrawing additional funds, but of not withdrawing them, since Serbia obviously does not need them. Discussing NBS's monetary policy for 2010 before the Serbian parliament's Finance Committee, Jelasic said that he expects the inflation rate will continue to drop by mid year, reaching 3.5 percent in June.  According to him, the drop is a result of restrictive monetary policy, frozen salaries and pensions and the effects of the economic crisis.  Jelasic noted that the reference interest rate has been in continual decline and is currently at eight percent.  He said that the inflation rate at the end of March was 4.6 percent and that NBS forecasts have the April rate at 4.3 percent. He reminded that NBS has set the 2010 inflation rate at six plus-minus two percent. Year-end inflation was 6.6 percent in 2009.
 

Djelic askes ratification of SAA and warns that economic turmoils within the EU will affect the conditions for accession

Belgrade/Brussels May. 14. 2010 (Serbia Today) - Deputy Prime Minister Bozidar Djelic said  that the latest economic turmoil within the EU and the establishing of a European mechanism for the maintenance of financial stability of the EU member states will affect the conditions for EU accession, which will become more demanding and strict. According to him, the EU will no longer "tolerate the EU accession of countries that  are not fully prepared," which can also be an opportunity to obtain greater support for Serbia and other Western Balkan countries.  He has requested support from the European officials for the continuation of Serbia's EU integration. He also expressed hope that the ratification of the Stabilization and Association Agreement (SAA) could begin already in June, based on the positive report that he expects from the visit of Hague Prosecutor (Serge) Brammertz. After the meeting with Djelic, European Parliament President Jerzy Buzek referred to Serbia's fight against crime, particularly when it comes to the processing of war crimes, stressing that he is familiar with Djelic's position regarding this matter and that the EU expects concrete steps in that direction.  

Dragutinovic : Serbia wiil not end up like Greece

Belgrade, May 13. 2010 (Serbia Today)  - The economic situations in Serbia and Greece should not be compared, since Serbia’s public debt is not as extensive, claims the Serbian Finance Minister Diana Dragutinovic. “Serbia’s public debt is not as great as in Greece” Dragutinovic said for daily “Vecernje novosti”. She added that the experience of Greece will be helpful, also pointing out that poor fiscal policies, not the financial crisis, led to Greece’s current situation.  Dragutinovic said that there must be a limit to how much debt a country can incur.  “That limit is 2.5 percent annually, to a maximum 40 percent of the gross domestic product,” Dragutinović said. Serbian Finance Minister  also announced  that Serbia is entering the new phase of talks wit IMF (beginning this week) in a very relaxed state, because it has fulfilled its tasks according to its IMF arrangement.  She announced an agreement with the IMF that pensions have to be harmonized three times by April 2012 according to wages in the public sector, and that they would then begin to be harmonized with the cost of living.

Before the arrival of IMF serbian officials give optimistic estimates

 
Belgrade May, 12. 2010 (Serbia today) - The International Monetary Fund (IMF) mission will arrive in Belgrade on May 12 to discuss the fourth revision of its stand-by arrangement with Serbia. The mission is expected to be in Serbia until May 26, and Albert Jaeger will once again lead the mission. According to earlier announcements, the talks will focus on tax and pension reforms and adopting the law for fiscal responsibility. Serbian Finance Minister Diana Dragutinovic announced earlier that Serbia is entering the new phase of talks very relaxed, because it has fulfilled its tasks according to its IMF arrangement. She said that it was agreed with the IMF that pensions have to be harmonized three times by April 2012 according to wages in the public sector, and that they would then begin to be harmonized with the cost of living. One task Serbia must complete is to draft a law for fiscal responsibility, after which IMF experts would look at the law, which is expected to decrease public spending within the gross domestic product (GDP) by 0.75 percent, with the goal of balancing out Serbia's budget by 2015. On May 15, 2009, the IMF approved the stand-by arrangement for Serbia worth a total of EUR 2.9bn, which is valid until April 2011. Serbia has already withdrawn EUR 1.3bn in three installments from the IMF arrangement.

Detecting code of the new punto 25th May

Belgrade, May 08. 2010 (Serbia today) - The first model of car to be produced at the company “Fiat cars Serbia” should be disclosed on 25th May. Fiat's will send a delegation of top management, led by Vice President Alfredo Altavilla, to Belgade and participate in the Regional Conference of manufacturers of automobile parts. According to Novosti, it is expected to be a smaller B-class model. Dimensions of this class are the most famous of the "punto 188" and "grande" variant of this model. The Italian company laid out a five-year plan on 21 April. It expects to roll out 34 new models by the year of 2012, of which two new models will be produced in Kragujevac. The first contract stated that the production would start with class A, a small city car, "Topolino" and slightly larger B-class, this was changed due to the crisis and with the cooperation with Chrysler. It will start with the smaller B-class model, which is specifically designed for Southeast Europe market and it probably will be labeled with the redesigned Chrysler logo and exported to the U.S. Market.

NBS: Greek banks in Serbia stable

Belgrade, May. 07. 2010 (Serbia today) - The financial situation of Greek-owned domestic banks is stable and they are liquid and solvent, a statement the National Bank of Serbia (NBS) announced on Wednesday.These banks, as well as other banking institutions operating in Serbia, are resistant to external shocks, which has been confirmed by stress tests conducted by the NBS on the methodology of the International Monetary Fund (IMF), and the checks carried out by a joint team of the IMF and the World Bank under the program of assessment of Serbia's financial sector, the NBS statement reads. In Serbia, there are four banks that are majority-owned by legal entities from Greece - Alpha Bank Serbia, Eurobank EFG, Piraeus Bank and Vojvođanska Banka - with a participation in the market of 16 percent. In 2009 these banks increased their credit activity by 10 percent, and the growing trend is continuing in this year. These banks, as members of the financial companies from Greece, operate in Serbia as independent legal entities within the frameworks of their banking groups, with the license of the NBS and their own capital, which enables them to properly and efficiently fulfill all their obligations towards their creditors, including the citizens.

Financial support from EU

Belgrade, May 06. 2010 (Serbia Today) - Serbia and the EU will sign a new financial agreement in late May, writes daily Politika. The media announced that after the recently signed deal on the use of EUR 70mn from the IPA funds of the European Union for the year 2009, Deputy PM Božidar Đelić plans to sign a new financial agreement with the European Commission by the end of the May. As Politika reports, there are funds from the 2010 IPA program, based on which another 170. 000.000 EUR will be donated to Serbia for 26 projects. Money will be used for social and economic development of southern Serbia (Jablanica and Pčinj districts) and southwestern Serbia (Zlatibor, Raška, Morava and Rasina districts, and that will be supported with EUR 15mn from the 2010 package. Funds will also be used for infrastructural investments in institutions of high education (EUR 25mn) and supervision of works on Corridor 10 (EUR 10mn).EUR 2.5mn will be used for the fight against financial crime, while EUR 28mn will go toward the construction of the Leskovac-Vranje electrical substation.

Serbian Tycoons have no property in Serbia

Belgrade, May 03 2010 ( Source: Blic) – As Serbian daily Blic writes, even six of seven businessmen who recently represented domestic economy in negotiations with the Government have their mother companies registered in Cyprus, Holland or British Virgin Islands. Companies behind which there are Miroslav Miskovic, Milan Beko, Miodrag Kostic, Toplica Spasojevic, Zoran Drakulic and Slobodan Petrovic are all registered in tax heavens where tax rates are smaller and where it is also possible to hide the real owners of the capital. According to official evidence by the Agency for economic registries, they have almost no property in Serbia. Thus Milorad Miskovic is always said to be the owner of ‘Delta Holding’ but one cannot see so in the Agency documentation. There it is written that ‘Delta Holding’ is owned by a company ‘Hemslade’ of Cyprus and Miskovic is mentioned as president of that company’s management board. The same case is with all other above mentioned businessmen. It is impossible to find out who owners of those companies registered in tax heavens actually are .

Serbia exits recession

Belgrade, May 01, 2010 (Serbia Today) — Director of the Serbian Statistics Office Dragan Vukmirovic said today that Serbia has exited recession as its GDP in the first quarter of 2010 was higher by 1% compared to the same period in 2009. Speaking at a press conference, Vukmirovic said that this was the first GDP growth seen after a fall during four consecutive quarterly periods in 2009. The estimate of Serbia’s exit from recession is based on a flash estimate of quarterly GDP published by the Statistics Office for the first time today, he said. The main reason for introducing this methodology is to provide early estimates during a crisis, said Vukmirovic. The flash estimate was introduced in Europe because of the current economic crisis and is based on calculations over a period of 30 to 45 days after the end of a quarter, while a detailed GDP estimate is formed over 60 to 90 days after the end of a quarter, he explained. A recession is defined as two consecutive quarterly GDP falls but only one quarterly period of growth is enough to exit recession, he said. The depersonalized data from the first quarter of 2010 shows a 1.2% GDP growth compared to the last quarter of 2009, said Vukmirovic. Vukmirovic said the retail prices of goods and services in Serbia in April this year were higher by 1.1% compared to the previous month. Compared to the same month of 2009, the April price increased by 7.4%, he stated. The cost of living in Serbia in April 2010 month-on-month got higher by 0.6%, Vukmirovic added. In April 2010, compared to December 2009, the cost of living increased by 2.6%, he said. He explained that the difference between inflation and the cost of living is a result of various influences including rising prices of certain products. The Director of the Serbian Statistics Office said that industrial production in March 2010 was higher by 2.7% compared to the first three months of 2009. Compared to the 2009 average, production was higher by 2.4%. According to Vukmirovic, during January – March 2010, compared to the same period in 2009, industrial production grew by 2.8%

Serbia exits recession

Dinkic: from May 1st only RSD loans

Belgrade, April 30. 2010 (Serbia Today) - The Serbian government issued yesterday the Decree which will terminate use of the foreign currency (Euro) in calculating loans. Serbian banks are from May 1st required to give loans only calculated in dinars without using currency clause. This will apply both to business and consumer loans. "It will be much safer for the businesses, because they will avoid the risk of exchange rate and interest rates on diner loans, liquidity is only 7 per cent per year, which is significantly lower than the previous clause," Mladjan Dinkic, Minister of Economy, told reporters. According to Dinkić, in the first three months since the start of the implementation of the program of subsidized loans, government granted nearly 500 million Euros of subsidized loans to businesses and citizens. "It's almost the half the total amount from last year, when the banks approved 1.3 billion of subsidized loans," he said.

Government to adopt program for revival of industrial centers

Belgrade, April 29. 2010 (Serbia Today) - Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said yesterday in Novi Pazar that the government will adopt a special program in May for the revival of industrial centers. Dinkic, who visited Novi Pazar together with Minister of Labor and Social Policy Rasim Ljajic, said that this program will cover Novi Pazar, Nis, Kraljevo and Zajecar. He explained that the program will entail special incentives for investors who open new workplaces in these towns. For example, investors in Novi Pazar will have double incentives from the budget per new employee. The Minister said that this town has a very high unemployment rate of 50% and that the government will especially encourage investors who want to build new production plants and renovate existing ones. He added that an office of the Development Fund will be opened in Novi Pazar, which approves soft loans for active industries in underdeveloped areas. Dinkic explained that these loans require a mortgage in the amount of 50% of the loan, the annual interest rate of 2.5% is fixed and the repayment period is five years. These loans will help companies that employ workers in the furniture, textile, shoe and machinery industries. Dinkic and Ljajic spoke with Novi Pazar Mayor Meha Mahmutovic and with the region’s businessmen. At the beginning of the visit, the ministers visited the Tahirovic furniture factory. This company is an example of a successful industry which not only produces goods for the Serbian market, but for export as well.

New “Fiat Uno” from Kragujevac

Belgrade, April 28. 2010 ( Serbia Today) - As Belgrade daily Blic reports, new version of the model Fiat Uno will be produced in Serbia and it is accepted that the first cars will be coming out of the assembly line from Kragujevac by the end of 2011. This news also appeared on several Italian websites specialized in auto industry news. It is accepted that press conference where Fiat will officially announce the production of a new model will be at the beginning of May in Torino. The same model will be produced in Fiat’s factory in Brazil. The new Fiat Uno will be presented to the public on May 7 in Brazil while the timing of the promotion of the Serbian model is not known yet. However, Nebojsa Zdravkovic Deputy Mayor of Kragujevac, confirmed for daily Blic that the factor in Kragujevac is well on the preparation road to start production of the new model. It is expected that the production of the new model of Fiat Uno will bring additional 10 thousand jobs for Kragujevac. As Fiat managers announced at their last visit to Kragujevac, Fiat will invest during this spring and summer around 1500 million Euros in car factory in Kragujevac.

Serbia, Italy set up Business Council

Belgrade, April 27, 2010 (Source:B92) - Serbia and Italy set up a Business Council, which is aimed at promoting relations among companies and entrepreneurs of the two countries, in Belgrade yesterday. Deputy Prime Minister and Minister of Economy and Regional Development Mlađan Dinkić and Italian Minister for Economic Development Claudio Scajola signed a joint declaration on founding of the Business Council. Dinkić evaluated that the founding of the Council, such as those Italy had already set up with France and Germany, confirms the importance of the economic cooperation between the two countries, underscoring that Serbia's exports had marked a 13-percent growth since the beginning of the year and that the major part of those commodities was exported to Italy. He recalled that Italy had started important business projects in Serbia, such as the arrival of Fiat, announcing that talks will soon start with Italy's producer of car components Magneti Marelli on setting up capacities in Kragujevac. Dinkić recalled that a feasibility study for the reconstruction of the Belgrade-Bar railway, developed in cooperation with Italy's Italfer, will be completed by the end of this fall. He announced that a summit of producers of car parts, sponsored by Fiat and the Serbian government, will be held in Serbia on May 25. The minister recalled that there are about 250 Italian companies operating in different sectors in Serbia. Minister Scajola said that Italy wants to intensify political relations with Serbia and help Serbia get accepted in the European Union sooner. Scajola underlined that Italian entrepreneurs are very much satisfied with their business results in Serbia, announcing “a bigger investment impulse” in the coming period.

PM meets with reps of U.S. companies

Belgrade, April 25. 2010 (Source: B92) - There's been good cooperation in creating favorable business environment for promotion of the Serbian economy, said PM Mirko Cvetković. He made the comment on Friday during a meeting with mangers and representatives of U.S. and other international companies that are doing business in Serbia and are members of the American Chamber of Commerce (AmCham). Cvetković pointed out that the top 2010 priority of the Serbian government is increase in employment rate and economic activity, the Serbian government's press office stated. Special attention was paid to the implementation of the regulatory guillotine, improvement of the legislation in the area of working relationships and real estate market regulations. “The government creates the business environment, while an active dialogue between state and economy is extremely important,” the prime minister underlined. AmCham President Skip Bornhuetter underscored that the chamber believes that consistent implementation of reforms is crucial for future attraction of foreign investments, and particularly of those reforms that refer to reduction of bureaucracy and administrative procedures. “In the period when the level of direct foreign investments is low, it is crucial to prepare the ground for the inflow of new investments and provide an impetus to the entrepreneurship,” Bornhuetter said.