"Keeping bad companies alive is luxury"

"Keeping bad companies alive is luxury"

BELGRADE -- New Economy Minister Željko Sertić says many of the 502 companies included in the recent public call for privatization are not likely to be profitable.

This would not happen "even if all their overdue debts are erased - so they will probably not attract any prospective buyers."

"After years of being kept alive artificially, such companies will have to go bankrupt or into receivership," Sertić told the weekly NIN in the first interview since parliament elected him.

Despite government efforts, it is not easy to find strategic partners for Železara Smederevo, FAP, RTB Bor and similar companies that cost the state EUR 700 million a year," he said, pointing out that Europe is in recession too.

"We have to do everything to make sure that these companies are no longer a burden on the state budget and to give a new chance to those with good market prospects, and it is up to the state to provide severance pay to workers who will lose their jobs," said Sertić, who was elected new minister of economy on Wednesday.

Commenting on the fact that Serbia had four economy ministers in just over a year, Sertić said that "it is not a good practice, as frequent changes of ministers also bring about changes to the economic policy." He also confirmed that the government will continue granting subsidies to new investors.

"Subsidies are just one of the elements needed to draw new investments and we cannot avoid them considering that all countries in the region grant generous subsidies to new investors, who bring with them the funds, the know-how, and the market - which we have lost long ago," said Sertić, adding that this is also the price paid for belated...