23.05.2011.

PRESS RELEASE

Despite the fact that 2010 was the most productive year in the last decade of the factory "Zastava Arms of Kragujevac, there was a delay in payment of salaries of workers.

There are many reasons for this, primarily caused by the financial problems accumulated from previous years, the obsolete production technology, inadequate investment in the more than 80,000 square meters of office and production space.

The Ministry of Defense with its activities in the field of international military cooperation gives full support to continuing the full product and placement of weapons in the last three years. The Ministry gives support to the Management Board in trying to solve the acute situation, as well as to finding system solutions that will contribute to increased effectiveness, efficiency and productivity.

Under the provisions of the Law on Foreign Trade in Weapons, Military Equipment and Double Goods, the Ministry of Defense demands approval of the statutory deadline. The permit to export under the law is issued by the Ministry of Economy and Regional Development. In the last three years, the Ministry has not denied permit to any of the applications of Zastava Arms.

In the last five years the Ministry of Defence of the Serbian Army, Zastava oruzje arms factory has made 427.055.000 RSD worth of contracts, and in the last two years alone 333.199 million RSD had been paid in advance with the delivery pending.

In accordance with the provisions of the Labour Act, collective agreements and general acts of the enterprise, the Ministry fully supports the management bodies to determine the circumstances and the possible responsibility of employees who have disabled the guards from performing their tasks and responsibilities.

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PRESS RELEASE