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Home/News/Serbia seeks investors to buy three indebted petrochemical plants

Serbia seeks investors to buy three indebted petrochemical plants

Serbia invited investors on Thursday to propose terms to buy three heavily indebted, state-owned petrochemical plants, part of a plan to boost growth and cut the national debt.

Under the terms of a 1.2 billion euro loan-deal with the International Monetary Fund which expires next year, Serbia must sell big state-run firms, including the three petrochemical plants and the RTB Bor copper mine and smelter.

In three separate invitations, the Economy Ministry said it wanted offers for the HIP-Petrohemija which produces various plastic compounds, the fertilizers maker HIP-Azotara and the MSK Kikinda, a producer of methanol and acetic acid.

Prospective investors will have until May 3 to submit proposals that include a price, investment plan and details of the number of jobs they intend to keep in each of the plants.

The three companies owe hundreds of millions of euros in long-overdue payments for utilities and natural gas which they use in production and are heavily subsidised by the government.