08.01.2015.

Meeting with representatives of the defence industries

Defense Minister Bratislav Gasic and Chief of the Serbian Armed Forces General Staff General Ljubisa Dikovic, with their associates, met today with the representatives of the Serbian defence industry and "Yugoimport - SDPR" in the House of Guard in Topcider. The meeting was attended also by representatives of the Ministry of Economy, Privatization Agency and the Serbian Bank which is to fund and provide lines of credit to the Serbian defence industry as of 1st January this year.

- The defence industry can be a driver of re-industrialization of Serbia in every aspect. It can be a significant factor in providing foreign exchange inflows from its export potential – Minister Gasic said stressing that besides the management of the factory the meeting was attended also by the representatives of the unions, because he wanted the workers also to receive full information about everything that has been planned for this year.

Gasic added that the Serbian Government is to invest significant funds – about 70 million euros – in the factories of the defence industry, but that the companies must apply for these funds with quality projects within ten days. He pointed out that the team for the preparation of proposals which are to be submitted to the Ministry of Economy and the Ministry of Finance to be presented before the Serbian Government included also representatives of the Ministry of Defence.

It was as early as in 2013 that the programme for investments in the defence industry was developed, the Minister said, adding that it was planned for the five-year period to invest in the Serbian defence industry 126 million euros. At this point about 93 to 94 million are lacking to be invested in all seven Serbian defence industry factories.

The meeting also touched on how to invest this money in the best possible way and what will be the outcome at the end of the investment cycle.

Speaking about the successful enterprises, the Defence Minister pointed out the operation of the "Prvi partizan" company from Uzice, which for the second year in a row has consistent and good results. There is also "Milan Blagojević" company from Lucani, which has a standard production growth and positive business results. "Sloboda" Cacak, according to him, is also a successful factory which, unfortunately, has a burden from the period six years ago, when they took over workers and credit obligations from "Sloboda aparati" company.

Gasic pointed out that today all companies regularly pay their contributions and that the "Zastava Arms" company from Kragujevac began two months ago to regularly pay its contributions to the budget of the Republic of Serbia.

- Once the debt is converted, all companies will be able to operate normally and pay all their obligations to increase their economic activity and income, from which they can pay taxes regularly. But for the time being they are heavily burdened by everything that has followed them since the period 2000-2012 – Defence Minister Bratislav Gasic said after the meeting.