Government temporarily abandoned multilateral compensation

- The Government of Serbia has temporarily abandoned multilateral compensation that would break the chain of debts – said Mlađan Dinkić, the Deputy Prime Minister and Minister of Economy of Serbia.

He said after the meeting of the Government that it had been estimated that such measure would not give the expected results and that it would not lead to the growth of economic activities.

Dinkić pointed out that the Treasury had been ordered to pay all the obligations of direct and indirect budget users on time, while the unsettled obligations of the budget of Serbia must be paid by the end of June 2009.

Public companies are ordered to make the analysis of their debts and claims – he said and added that the estimates were that the claims were larger than debts.

The new Law on Bankruptcy, which is now in the phase of public discussion, will stipulate introduction of bankruptcy in the companies whose accounts are frozen for more than two years.

Dinkić said that the information that the accounts of 60,000 companies in Serbia were frozen were incorrect because two thirds of that number were associations and entrepreneurial stores.

Dinkić said that the possibility of forced collecting of suppliers’ claims from market chains was taken in consideration.

- The biggest chain of debt exists in trade sector and it amounts to about 600m EUR. There are two possibilities: market chains will either reduce their debts to suppliers by themselves or they will be forced by the state to do so – he pointed out.

The Deputy Prime Minister of Serbia, Mladjan Dinkić, pointed out that the appropriate sanctions accompanied by suitable measures would be introduced in case the debts were not paid.