Serbia to finish privatizing by 2008
BELGRADE (Reuters) – Serbia has made good progress in its privatization efforts this year and will finish the sale of all state-owned public companies by the end of 2008, the country’s Economy Minister Mladjan Dinkic said yesterday. «Those companies that are not privatized by then will go bankrupt,» Dinkic said, adding the state would try to find buyers at that point. In a news conference presenting the work of the new government, which took power in mid-May, Dinkic said 77 companies had been successfully privatized, bringing in a total of -159 million plus pledges for further investment. More than 1,000 companies, including Yugoslav-era conglomerates and other firms now going through bankruptcy procedures, are still awaiting privatization. Dinkic said the state was looking forward to expressions of interest in the tender for the sale of troubled copper miner RTB Bor, adding that Romania’s Cuprom would be barred from the new sale as it later pulled out when it won the original tender. Belgrade had to cancel the sale of Bor to Cuprom in April because the firm failed to provide payment guarantees on time, against a backdrop of union opposition to the deal. Dinkic repeated that automaker Zastava – which makes the Yugo and also has deals with General Motors and Fiat for local production of the Opel Astra and Punto cars respectively – will be put up for sale in December. «We are also working on a tender for privatization of Zastava trucks,» Dinkic said. «We want to find strong strategic partners for these two [Zastava cars and Zastava trucks] by the end of next year.» Dinkic said there were already signs of interest from several companies in Serbia’s auto industry, notably from Ford, GM, Fiat, India’s Tata Motors and «some Chinese companies.» «We are prepared to offer the best possible conditions for car makers, better than anyone in the region,» Dinkic said. He did not specify if the interest from the foreign car makers extended to the purchase of Zastava. Last year, Zastava made 15,000 cars, well under its annual capacity of 60,000. Dinkic said Rothschild won the tender to be financial adviser to guide the privatization of JAT Tehnika, an aircraft maintenance firm formerly part of the JAT Airways flag-carrier. JAT Tehnika specializes in the maintenance of aircraft, engines and components, providing services to its former parent JAT Airways as well as foreign airlines. Dinkic added that the sale of once dominant but now bankrupt department store chain Robne Kuce Beograd is on track, with an auction due to be held by the end of October. «There are over 10 interested investors and the starting price will be -140 million, but we expect it to go higher,» Dinkic said. The auction will be broadcast live on television.
