The conclusion of agreements with the IMF was the prerequisite for a successful restructuring of the external debt. The current account deficit should reach $1.5 billion (12.9% of GDP) in 2002, reflecting the resumption of external debt servicing. For more information please visit the National Bank of Yugoslavia, the country's central bank: http://www.nby.yu.
Industrial structure
The dynamics of export growth in this sector will be very high - the average annual growth of exports in the period 2001-2010 will be 15%, i.e. doubling every 5 years. Coordinated development of technology transfer and service engineering, for .. more effective technological development and increase in service exports. Export strategy: Export of finished products of the automotive industry (cars, trucks, buses, tractors, special vehicles, universal tractors).
Socio-economic infrastructure
As these institutions recover their costs through higher service fees, impose reliable collection methods and demonstrate effective financial management, they will separate from the municipality and become independent enterprises. A number of legislative changes have already been introduced to provide greater transparency and accountability for local authority finances, giving local authorities the authority and financial capacity to borrow and invest. The recently introduced environmental protocols and regulations contain new environmental legislation regarding the requirements for the sustainable use of natural resources and assessments of their ten-year impact on the environment.
Foreign aid Serbian budgetary resources were spent on repairs in the electricity sector and in 2001 the capacity of several power stations was increased or restored. To obtain financing and cover operating costs, rates in this and other energy sectors will increase in the near future. . Managing the political impact of the reforms, especially of tariff increases and public utilities, is currently a major challenge for the government of Serbia.
Commodity market
Southeastern Europe is a rapidly developing market with significant growth potential in the future. The political, economic and social reforms implemented in the region have created a healthy environment for profitable investments. The signatory countries have committed to conclude all bilateral free trade agreements by the end of 2002.
Free Trade Agreement with Bosnia and Herzegovina - The Federal Republic of Yugoslavia and Bosnia and Herzegovina have agreed on the initial Free Trade Agreement, which will facilitate the removal of trade barriers between the two countries by 2004 on an asymmetric basis. The same dynamic must be applied in the case of the abolition of import duties for Yugoslav products to Bosnia and Herzegovina. A contract on free trade will be signed before the end of the year.
Following the signing and ratification of the agreement, Slovenia will immediately abolish all customs taxes on industrial goods and Yugoslavia will gradually abolish customs tariffs by the year 2007. In December 2000, a preliminary declaration of cooperation with the EFTA was signed, outlining asymmetric treatment of the Yugoslav countries promised. products on the markets of the four Member States. This declaration paved the way for a future free trade agreement between EFTA and FR Yugoslavia.
The EU has taken steps to stimulate the exports of countries in the region through the establishment of autonomous trade preferences (ATP), which provide duty-free access for over 95 percent of goods.
Labour market
The provisions of this law apply to employees working on the territory of the Republic of Serbia with the domestic or foreign legal or natural person (the employer), as well as to the employees sent abroad by the employer. The provisions of this law apply to foreign nationals working for an employer on the territory of the Republic of Serbia, unless otherwise provided by law. The law does not oblige the employer to advertise vacancies in the public information media.
Working hours are reduced in proportion to the harmfulness of working conditions, but by a maximum of 10 hours per week. The law does not prescribe mandatory criteria for determining the duration of annual leave. During the annual leave, the employee has the right to compensation in the amount he would have earned if he had worked.
The employee is entitled to compensation for income during sick leave (65% of income), occupational disease and injury, annual leave, public holidays and paid vacation (100% of income). If the employer intends to terminate the employment contracts of more than 10% of the total number of employees. In the event of dismissal, the employer is obliged to provide the employee with severance pay corresponding to at least two and at most five of the employee's salary, depending on the insured years of seniority.
The Government and the Chamber of Economy of Serbia no longer participate in concluding the general collective agreement.
Industrial policy
Privatization
The privatization process begins with an initiative (constitutional act of the company that will be in the process, with a corresponding letter of intent) and the preparation of documentation (detailed information about the subject to be privatized). For more detailed information on the privatization process, visit the website of the Ministry of Economy and Privatization http://www.mpriv.sr.gov.yu.
Anti-monopoly policy measures
Trade and investment system
The new Customs Tariff Law did not change the legal aspects of the previous law, but only changed the customs level specified in the Customs Tariff Nomenclature, which is an integral part of the Customs Tariff Law. The import and export of goods is free (LB), except for goods that are necessary for an adequate supply of the local market. A series of laws should be passed in parliament regarding additional incentives to attract foreign investors.
The law regulates foreign investments in enterprises and other forms of establishment involved in profit-generating activities in the FR Yugoslavia. Foreign investment can be made by establishing a new business or by buying interests or shares in the existing domestic business. Investment in a Yugoslav enterprise which grants the foreign investor interests or shares in the initial capital of that enterprise;.
A foreign investment can be in the form of convertible foreign currency, commodities, intellectual property rights, securities and Yugoslav dinars, which are transferable abroad under foreign exchange regulations. A foreign investor can convert his created claim into a business share or share of the debtor company. A foreign investor, in connection with any payment related to the foreign investment, may freely convert the local currency into a convertible foreign currency.
A foreign investor may, after fulfilling the commitments in accordance with domestic legislation, freely and without delay transfer abroad in convertible currency, fully financial and other assets related to the foreign investment (profits, dividends, additional payments, property after the dissolution of the enterprise, etc. .).
Dispute resolution systems
The court responsible for foreign trade arbitration at the Yugoslav Chamber of Commerce in Belgrade was established in 1947. Serbia/Yugoslavia is also a signatory to all important conventions related to arbitration: Convention on the Recognition and Enforcement of Foreign Arbitral Awards in New York, the European Convention on International Trade Arbitration and the Convention on the Settlement of Investment Disputes in Washington.
Institutions to promote foreign investment
We started by analyzing the current state of our economy when the creation of the privatization process began. We concluded that the process of privatization should produce an open structure of the economy and capital for new investments. This army of people, of citizens, will get a chance to participate in part of the privatization process.
In other transition countries, the privatization process of the entire economy was carried out by the state privatization agency. For this reason, a large number of enterprises will be allowed a completely decentralized initiative and implementation of the privatization process. The overall transparency of the process can only be guaranteed if there is coordinated, coherent action from all agencies.
In the event of an auction, 30% of employees, employees and pensioners have the right to distribute shares. Based on the starting points of the restructuring in the Privatization Act, we will allocate part of the funds from the privatization to the development of small and medium-sized enterprises, to create a flexible economy.
In the case of tender privatization, the decision-making process is divided between the Agency and the Tender Commission.
Industrial Policy – Privatization - Public Tender Procedure
The agency provides the company with information on the privatization method chosen on the basis of the prospectus and received letters of interest submitted by potential buyers. The selection of the adviser takes place by public request for proposals or by invitation. The consultant is engaged to provide technical assistance in organizing the tender and selecting the best tenderer.
A public invitation is an offer to potential buyers to submit their offers for the purchase of a company. The date of publication of the public invitation in the media (at least one daily newspaper, the Internet and, if necessary, in the foreign press) is considered the day of the opening of bids. The offer of the public procurement participant for an individual criterion becomes an integral part of the purchase contract.
Within three days of approval of the registration results, the Agency will notify all ranked participants in writing. The Share Sale and Purchase Agreement is entered into by the buyer and representatives of the Agency and the company. From that moment on, the buyer takes possession of the company and enjoys free use of the acquired property.
The Agency is obliged to keep the tender documentation for at least three years after the date of conclusion of the Share Sale and Purchase Agreement.
