news 17 Apr 14

Serbian Companies in Restructuring Heavily in Debt

Serbian companies undergoing restructuring owe 1.5 billion euro to state creditors alone, World Bank official Dusko Vasiljevic warned, increasing the risk of them going bankrupt.

Tanjug, B92

Speaking after a conference on reforming public enterprises in Serbia, World Bank offical Dusko Vasiljevic said Serbia's 153 companies undergoing restructuring owe the state 1.5 billion euro.

"That includes debts to the tax office in unpaid taxes and contributions, debts to the Development Fund, as well as debts to public companies for unpaid electricity, gas, water and public utility services," Vasiljevic noted.

"In some of those companies, the state is the biggest creditor, so any decision to initiate bankruptcy proceedings could be postponed for political reaons," he said.

"However, nearly all those companies also have commercial creditors, who the government cannot put pressure on, so there is always a risk of bankruptcy proceedings being initiated in an uncontrolled way," Vasiljevic added.

The Serbian government needs to ensure that workers get redundancy payments if any of these companies do go bankrupt, he said.

Speaking about possible solutions, Vasiljevic said the government should assess which of the companies might be made profitable and make fresh attempts to privatize them.

The others should go into regulated bankruptcy proceedings during the course of which the workers receive redundancy payoffs.

"At the same time, the state must come up with active labour policy to provide employment for some of the workers who lose their jobs," he concluded.

Talk about it!

blog comments powered by Disqus

Premium Selection

ex-croatian-pm-s-success-doomed-from-start-06-22-2016
23 Jun 16

Croatia's Ex-PM Was Doomed From Start, Experts Say

The position of Croatia's now former Prime Minister Tihomir Oreskovic, a non-party candidate for the post, was highly problematic from the moment he took office.

former-sandzak-mufti-mulls-joining-serbian-government-06-22-2016
23 Jun 16

Former Sandzak Mufti Mulls Joining Serbian Government

Muamer Zukorlic, the controversial former mufti, businessmen and new member of Serbia’s parliament, is considering entering a new government if it offers Bosniaks some concessions. 

22 Jun 16

Balkan Countries Brace for British Vote on EU

22 Jun 16

Census Bombshell adds to Bosnia's EU Woes

21 Jun 16

Report Hailing Economic Growth Questioned

20 Jun 16

All Eyes on China in Serbian Steel Mill Town

Latest News from the Balkans

24 Jun 16

Balkans Shaken as UK Chooses EU Exit

24 Jun 16

Fears Grow For Hijacked Albanian Fishermen

24 Jun 16

Kosovo Probes Dubious KLA Veterans' List

24 Jun 16

Bulgaria Moves to Make Radical Islam a Crime

24 Jun 16

Romania to Curb Perks of Jailbird Authors

24 Jun 16

Islamophobia Summit Opens in Bosnian Capital

24 Jun 16

Albania Plans Memorial to Communism Victims