Gov't reaches decision concerning privatization of Zelezara

Serbia's government reached a decision Thursday concerning launching an initiative to privatize the Zelezara Smederevo steelworks.

The country's Privatization Agency will Friday invite all interested investors to submit their expressions of interest for participating in the privatization of Zelezara Smederevo, says a statement from today's government meeting.

Serbian Prime Minister Aleksandar Vucic said on Thursday that a public call for bids for the Smederevo-based steel mill will be issued by the end of this or early next week.

Vucic told reporters in the village of Jamena near Sid, where he talked with the citizens that were affected by the devastating floods in May, that all procedures will be completed by February next year, and that the steel mill will operate at full capacity already in May or June.

"The state will take on all debts of the steel mill totaling around EUR 370 million," the prime minister said, adding that the state will do everything in its power to find a good investor and resolve the issue of the steel mill in Smederevo as soon as possible.