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Serbia’s Privatization Agency announces a public tender for the sale of 502 social enterprises

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Serbia’s Privatization Agency has announced a public tender for the sale of 502 of the remaining 584 social enterprises. There is a chance that a small number of them be privatized, economist Ivan Nikolic told the International Radio Serbia, and expressed concern that the two-thirds of employees in these companies will lose their jobs.

Which companies will have the opportunity to continue operating will be known by mid-September. Those that do not attract any investors by September 15 will end up filing bankruptcy. The aim of privatization is to solve the problem of redundancy, with the arrival of investors, Nikolic said. At issue are about 100,000 employees, and I believe that a third of companies may find a strategic partner that could keep a significant number of the workers and partly rebuild the activity of the company. If this time the Government is determined to solve the “burden” of companies undergoing restructuring, it is possible that some two-thirds of employees become jobless. Of course, they will get social programs and it would be good to think first of all about how they could embark on their own activities. It will be very difficult, since the experience of previous privatization processes proved that employees, who thus become jobless, hardly manage, and their fate becomes uncertain, concluded economist Ivan Nikolic.

Of 502 companies the government has offered for sale, as many as 63 are involved in manufacturing, 18 in agriculture, 21 in health and social care, 12 in construction, and 12 in financial activities. In order for these companies to attract investors, the Government is ready to write off their debts to the state, and it is about 2.4 billion euros.

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According to an earlier estimate of experts, it is expected that a third of the 160 companies in restructuring will find a strategic partner, a third will continue to operate on its own, while one third will face bankruptcy or liquidation. The burning problem is that the biggest losers’ annual cost for the state amounts to more than 750 million euros. This burden from the past will be solved with the help of the World Bank’s loan of 250 million dollars, which will be used for redundancy payments

Source Balkans

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