The Program for "Petrohemija" Adopted- The Loan of One Billion Dinars is Approved

The Government of Serbia adopted the program to start production in Petrohemija, in which will be approved the loan of about one billion dinars, said State Secretary of Serbia Nebojsa Ciric.

He said that the loan will be used for the procurement of the primary gas and working capital, which should be the "initial cap" for the beginning of production, probably in mid-September. Ciric said that the plan that "Petrohemija" begins to return the loan within six to seven months and to be settled as soon as possible.

- The program includes measures to 31 August, do the new job systematisation
and to determine the surplus employees. It is expected that about 500 employees go from "Petrohemija" after management and the Ministry of Economy will partially finance the program from the transition fund - said the state secretary for economy and privatization in Serbia.

According to him, accepted the plan for the procurement of raw gas, or an agreement with "Oil Industry of Serbia "(NIS), and Lukoil, and was given the oder to sign agreements on debt reprogramming with several banks, including Intesa and Societe Generale Bank.

Ciric said that the renewal of production in the Petrohemija "based on a profitable basis and to then to be considered investment plans and possible connectin with strategic partners.

Saving measures, he said, it is to fund earnings in the "Petrohemija" reduce from about 330 to about 150 million dinars a month, made the procurement of more raw materials, and will be analyzed and contracts with customers, to be improved.

HIP-Petrohemija a.d. Pančevo

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

NIS a.d. Novi Sad

Lukoil Srbija a.d. Beograd

Lukoil Company Moscow

Banca Intesa a.d. Beograd

OTP banka Srbija a.d. Novi Sad

Nebojša Ćirić

the Transition Fund