Serbia News: Economy
Jat Airways tender called
Belgrade - Jat Airways tender called • Thu 31 July 2008 | Source: B92
The Privatization Agency has called a tender for the sale of a majority stake in Jat Airways. The minimum price for the 51 percent holding is EUR 51mn. According to the public announcement printed in daily Politika, potential buyers can send offers for a minimum 51 percent or maximum 70 percent stake in the company.
According to the Privatization Agency, the sale announcement will also be printed in the Financial Times. The deadline for applications is October 24, and the auction guarantee is EUR 2mn. The tender documentation can be bought until September 26 for EUR 25,000.
In order to participate in the tender the bidder must have an Air Operator’s Certificate (AOC), and, along with its affiliated companies have at least 1.3mn travelers, and a consolidated balance of a minimum EUR 200mn.
If the bidder is a consortium, one member must have at least a 51 percent interest in the consortium, and that same consortium leader must meet all the tender conditions.
According to the Open Air Agreement that Serbia signed, companies not registered in the European Union or Serbia cannot hold more than a 49 percent stake in Jat.
Serbia third most attractive investment destination
Serbia is one of the most attractive developing markets countries, according to this year's PwC EM20 Index.
The PricewaterhouseCoopers (PwC) index shows once again that in addition to the so-called BRIC group (Brazil, Russia, India and China), which continue to offer interesting investment opportunities, there are other locations which also offer an attractive alternative for British companies which want to invest in the growing markets in the world, the PwC said in a statement.
A PwC official said that political risk was the deciding factor for the rise and fall of countries on this list and that this especially referred to Serbia, which had dramatically improved its position on the list primarily owing to greater political stability after the year 2000.
In 2008, Serbia reached the number three sport, compared to 2004, when it was at 25, he said.
Egypt is at number one, followed by Bulgaria, while Romania, another new EU member, is ranked at number seven.
Bank of Moscow set to launch in Serbia
Bank of Moscow Belgrade has met all the required conditions for doing business in Serbia, its advisers Citadel Financial said Wednesday.
The Russian bank previously obtained a greenfield banking license in mid-May.
Bank of Moscow will be the first Russian bank to come to Serbia and the first greenfield investment in Serbia's banking sector in seven years.
The bank was founded in 1995 and is one of the four largest and most stable banks in Russia. Its largest shareholder is the City of Moscow with a 44 percent stake. It is also active in Belarus, Ukraine, Lithuania and Estonia, and its Western Europe office is based in Frankfurt. The bank provides services for over 104,400 corporate clients and over 8.5 million individual customers. Source: B92
Construction of "Southern Stream" to begin in 2011
Aleksey Mueller, president of "Gazprom" board of directors said that the route of the "Southern Stream" gas pipeline through Serbia would be definitely determined until the middle of the next year.
Its construction shall begin in 2011 until the latest, he adds. The feasibility study and final decision over the complete route of the "Southern Stream" shall be finished until the middle of 2009.
Apart from already signed agreements with Bulgaria, Serbia, Hungary, Greece and Italy, another two countries, Austria and Slovenia are to join the project since the negotiations with them are in the final phase.
President of "Gazprom" management board Aleksandr Medvedev said to be sure that the energy deal between Russia and Serbia would be ratified by Serbia Parliament and that the agreement on privatization of Serbia Petrol Industry (NIS) would be signed.
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