Serbian government writes off 50 percent of liabilities to 124 firms

Before today's session

Belgrade, Feb 5, 2004 - The Serbian government has decided to write off 50 percent of liabilities for taxes, contributions, and other duties, calculated until December 31, 2003, to 124 enterprises, in an effort to speed up and facilitate their privatization. The repayment of the remainder of liabilities will be postponed for 12 months, the government said in a statement following a session Thursday.

Companies to which the decision applies include:

• those queued up for restructuring

• some of the firms which have had unsuccessful tenders or auctions and are now unlikely to be sold-off without the debt write-off

• the companies in which the state took over majority stakes through debt-for-equity swap prior to December 31,2001.