The Privatisation Committee held its fifth sitting on 10 December where the Committee members were briefed on the Information on the impact of the world financial crisis on Serbian economy and privatisation with the accompanying 2009 economic policy measures. They also considered the Ministry of Economy and Regional Development’s Report on the Activities of the Privatisation Agency for October 2008, the Privatisation Agency’s Work Plan for November 2008, as well as the Activities Report of the Republic of Serbia Share Fund for October 2008.

The sitting was chaired by the Committee Chairman, Milan Nikolic, and attended by the Minister of Economy and Regional Development, Mladjan Dinkic and associates, the director of the Privatisation Agency, Vesna Dzinic and the director of the Share Fund, Aleksandar Gracanac.

The Information on the impact of the world financial crisis on Serbian economy and privatisation with the accompanying 2009 economic policy measures was outlined for the Committee members by the Minister of Economy and Regional Development, Mladjan Dinkic. He pointed out that Serbia’s economic growth is still high, but that due to the world crisis Serbia is entering a precarious period. The average growth rate in the previous 5 years reached 7%, and in 2009 it is expected to be about 3.5%. The inflation in 2008 will be a little under 9% and the planned 2009 inflation is 8%. The country’s foreign reserves are 3.5 times higher than the money mass, so the domestic currency is expected to be stable. The rate of unemployment in Serbia this year is expected to be less than 18%, and the plan is to lower it to 11% by the end of this Government’s mandate. Also, the goal in 2009 is to preserve the existing jobs and create new ones. Direct foreign investment is expected to be on par with last year’s level. Public debt this year amounts to 25% in relation to the gross national product. Securing means for capital projects will be the Government’s priority in 2009, foremostly for the construction of Corridor 10. The specific measures to be implemented next year are measures to maintain the stability of the exchange rate and prices, a financial support package for the economy, to decrease public expenditure and bureaucracy and raise capital investment by 30%. Minister Dinkic also stated that 1 796 companies in Serbia have been privatised so far, generating 2.8 billion euros of total profit from the privatisation process.

In the discussion on this item on the agenda , the Committee members and deputies present talked to the Minister of Economy about the oscillations of the exchange rate of the dinar, the procedures concerning capital investment, security of the financial sector, as well as the current stage of negotiations on the sale of NIS to the Russian partner.

The Committee members went on to adopt the Ministry of Economy and Regional Development’s Report on the Activities of the Privatisation Agency for October 2008, the Privatisation Agency’s Work Plan for November 2008, as well as the Activities Report of the Republic of Serbia Share Fund for October 2008 by a majority of votes.