Serbia Today, 97-06-16

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From: Yugoslavia <http://www.yugoslavia.com>

Serbia Today

CONTENTS

[01] SLOBODAN MILOSEVIC MET WITH MOMCILO KRAJISNIK, DRAGAN KALINIC AND GOJKO KLICKOVIC

[02] THE OWNERSHIP TRANSFORMATION LAW HAS BEEN FORMULATED

[03] MINISTER DJURA LAZIC AT THE OPENING OF THE 5TH FOLK ART FESTIVAL IN ISTOK

[04] CABINET MEMBER DRAGAN TOMIC ON THE EXPORT PRODUCTION FINANCING PROGRAM

[05] SERBIAN DELEGATION VISITING CHINA

[06] MINISTER VICO IN THE DANUBE BASIN CO-OPERATION

[01] SLOBODAN MILOSEVIC MET WITH MOMCILO KRAJISNIK, DRAGAN KALINIC AND GOJKO KLICKOVIC

Serbia Today, 1997-06-16

Serbian President Slobodan Milosevic met yesterday with the member of the tripartite Presidency of Bosnia and Herzegovina - Momcilo Krajisnik, the Speaker of the Parliament of the Republic of Srpska - Dragan Kalinic and the Republic of Srpska Prime Minister - Gojko Klickovic - reads the statement released by the Presidential Office.

During a lengthy and comprehensive conversation the implementation of the Dayton-Paris peace agreement was discussed in order to build peace and stability in the region. Special attention was dedicated to the efforts that ought to be made for the renewal of the areas destroyed during the war.

In this sense, the coming local elections should re-affirm the successful realisation of the Dayton Document, as well as a more coherent involvement of the international community in the reconstruction of the country based on level field conditions.

The quick economic rehabilitation of the country particularly relies on the so-called initial package of regulations that will soon be discussed and approved by both Bosnian Parliamentary Assembly chambers, including a law on the Central Bank, a state budget law, a customs policy law, as well as documents that will regulate foreign trade, foreign debts, immunity and the ratification of international agreements. These provisions should cover most of the common interest issues.

During the meeting, questions concerning the realisation of the Agreement on special parallel relations between the Republic of Srpska and FR Yugoslavia have also been discussed.

[02] THE OWNERSHIP TRANSFORMATION LAW HAS BEEN FORMULATED

Serbia Today, 1997-06-16

The draft Law on ownership transformation will be presented on Thursday at the Chamber of Trade and Industry and the following week it is to be submitted tot he Serbian Government, i.e. the Parliament. This crucial law is to be approved at the forthcoming session of the Serbian Parliament, due by the end of this month or at the beginning of July at the latest.

The Law is to become effective on November 1st - said Serbian Government expert team Prof. Dr. Mirko Vasiljevic in an interview published today by "Vecernje novosti". According to the final version of the law, verified last week by the SPS Head Board, socially owned companies not only have the right to decide when an how they are to carry out the privatisation process, but are entitled - whenever the do it - to 60% of the capital in the form of free shares for workers (and retired former workers). The privatisation process also does not entail any deadlines for the transformation of the socially-owned capital.

"We pursued solutions that will ensure the maximum efficiency of the entire process - through market orientation and social equity. Out of the total company assets, 10 per cent will be immediately transferred to the old hard currency savings found, the same percentage to the retirement Fund, 60 per cent is to be distributed as free shares to employees, retired former employees, and farmers, while the remaining 20% are to be sold but without any rebate. Each seniority year entitles the worker to 300 marks worth of free company shares.

The free shares package is completely separated from the purchase of shares with a rebate, i.e. they are not linked in any way. The maximum amount that can be purchased with a rebate is equivalent to 6.000 German marks. The rebate is 20 per cent plus one per cent of each seniority year. The maturity is six years: ten per cent of the total sum in each of the first two years, and 20% annually in the remaining four years. The company has the obligation to offer the shares destined for sale (not more than 20% of the total assets) to those entitled to a rebate first. Only the unsold shares can be offered to someone other - but at full price. What remains unsold after this second round of sales is to be directed into the state shares fund, but the sale will still be managed by the original company.

Once the company decides to carry out the privatisation process it has the obligation to immediately direct 10% of the shares to the pension fund and the same amount to the old hard currency savings Fund. The company also has to make a public invitation for the distribution of free shares and rebate sales.

The free package amount and its management is identical for companies that have already initiated the privatisation process and that have a certain percentage of assets in share capital. The procedure is also the same, because free shares were not envisaged by previous laws that were applied in privatisation procedures. Only the rebate will be reduced for the workers that that have already used this option in the previous procedure - stressed Prof. Dr. Vasiljevic.

[03] MINISTER DJURA LAZIC AT THE OPENING OF THE 5TH FOLK ART FESTIVAL IN ISTOK

Serbia Today, 1997-06-16

The Borba daily reports that Serbian Cabinet member Djura Lazic stated yesterday in Istok (Kosovo) that the preservation of the Serbian culture and tradition helped us keep the Serbian spirit in the recent dire times. Inaugurating the 5th Folk Art Festival in Istok, Minister Lazic remarked that similar manifestations will help us be what we are and to remain masters of our future. "We are faced with many threats that our borders will be redrawn, but they forget that the Serbian roots in Kosovo and Metohija are very deep and that they go back many centuries. That's why these roots can not be eradicated easily", he added. Minister Laic also remarked that the borders of Serbia have been drawn in blood in the honourable struggle for survival that mark the history of the Serbian people. "These borders can not be re-drawn with ink or by the will of some prompted individuals. We will survive on this land", stressed Minister Lazic.

[04] CABINET MEMBER DRAGAN TOMIC ON THE EXPORT PRODUCTION FINANCING PROGRAM

Serbia Today, 1997-06-16

Mr. Dragan Tomic - Co-ordinating Minister and Chairman of the Government Co- ordinating team met yesterday in Vranje with numerous businessmen, municipal government and Pcinj County officials, and representatives of the Social Party, and discussed with them the preparations for the realisation of the Government Program for financing export-oriented production.

According to TANJUG news agency, Mr. Tomic remarked that the Program represents a good solution for a quicker and more successful revitalisation of production on those industry sectors that available capacities and staff and can market their products abroad. In view of the fact that in the first five months, the export rate growth was around 40% as planned, the realisation of the Program will also allow a significantly greater exports growth envisaged by the 1997 economic policy. At the same time, the planned annual industrial production rate growth (14%) will be ensured, Mr. Tomic said.

Minister Tomic indicated that export-oriented production will be financed according to European financial criteria, i.e. under extremely favourable conditions - with an annual interest rate of 4-6 per cent - which is far more favourable than the existing ones. He also added that this will greatly reduce production costs and enhance the competitive position of the national industry.

The funds will be allocated as foreign currency loans and will be repaid in foreign currency in 3 or 6 monthly instalments (9 instalments in very special cases) according to the length of the individual production cycles. Minister Tomic also remarked that smaller loans - destined to quickly complete existing projects and remove production bottlenecks- will much longer maturity. One of the pre-conditions for such investments is that employment and exports be immediately increased.

The Co-ordinating Minister observed that one of the most important aspects of the Government Program is the inherent mechanism for preserving the stability of the business environment. This entails a firm dinar exchange rate and stability of prices, that can not only be reduced throughout the harmonisation with world prices without any possibility of growth of prices.

"The greater use of production capacities, growing employment and exports helped by the Program will reduce production costs, that making possible price reductions", Mr. Tomic underscored.

"The Government Program also includes specific mechanisms for monitoring the realisation of export-oriented production plans by all the companies using these loans. The Government has already formed special teams comprising government officials and experts, that will carry out the supervision on daily bases. All the companies that fail to implement the obligations they have assumed and that try to undermine the business environment stability will be immediately excluded from the Program for financing export-oriented production" - Mr. Tomic underlined.

According to him, the Program implementation will begin next week, and this will greatly help the quick expansion of employment, production rate and exports growth, with the consequent improvement of living standard of all working people and of the population in general. "It should be stressed that the dynamic expansion of industrial activities will also ensure more stable public revenues and input for various funds used to finance diverse social programs. The current problems affecting this area - which had culminated during the international embargo - will practically be overcome ensuring the security and a stable future for the working people, pensioners and all other citizens", said Mr. Tomic.

The Co-ordinating Minister also observed tat export-oriented production has been given maximum priority within the Program. "The comprehensive Government Program for supporting national economy will also include credits for primary agricultural production and food-processing industry, as well as the broadening of the Program for the renewal of agricultural machinery. In final instance, all this should help increase exports and improve the exports structure, because the future measures are to ensure greater agricultural production which can be easily marketed world wide, involving the major potentials of the food processing industry, and the production of agricultural machinery."

[05] SERBIAN DELEGATION VISITING CHINA

Serbia Today, 1997-06-16

The state delegation headed by Serbian Minister of Industry Mr. Zivota Cosic left for China on Friday. After arriving in Beijing, the delegation that will attend the 8th International Fair in Harbin, met with the Yugoslav Ambassador to China - Mr. Slobodan Unkovic, and with the representatives of the Yugoslav companies in China.

According tot he statement issued by the Yugoslav embassy, the delegation arrived in Harbin today and tomorrow it will attend the opening of the exhibition - where seven Yugoslav companies will be presented.

Particular attention was attracted by the Business Forum, where representatives of our delegation discussed with Chinese partners the possibility of broadening the co-operation between FR Yugoslavia and PR China, and in particular between Serbia and the Heilujang Province that have stipulated special ties.

On Saturday a special edition of International Business (the most important Chinese financial daily with a circulation of 380.000 copies) was published with a special supplement on Yugoslav industry and possibilities for co- operation between our country and China.

It is expected that this issue - coinciding with the opening of the Harbin Fair - will draw additional attention of potential Chinese business partners to the highly prospective economic co-operation between the two countries.

[06] MINISTER VICO IN THE DANUBE BASIN CO-OPERATION

Serbia Today, 1997-06-16

The meeting of the managing group of the Danube basin countries' Working Community started on Sunday in Odessa (Ukraine). The Republic of Serbia is one of the founders of this form of co-operation of in the Danube basin regions. After the sanctions were lifted last year, Serbia renewed its full membership in the Working Community. Serbian Cabinet Member - Ratomir Vico is also taking part in the meeting.

Minister Vico stated in Odessa that Serbia is prepared to actively co- operate in economics, transports, tourism, ecology and sports with all the Danube basin countries. These forms of co-operation are particularly important for Serbia which is now "about to come out of numerous difficulties and launch major development projects", said Mr. Vico.

At the meeting, which involved representatives from all the European countries linked by the Danube, the proposal to initiate a permanent form of co-operation in the broadcasting media sector advanced by Minister Vico was given full support. Minister Vico's proposal for the nomination of Serbia as host of the Danube basin conference on co-operation in transports and ecology also received support including that of Bavaria and Austria which currently chair the two work groups.

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