Regulations governing conversion of debts into state-owned capital on April 16th

- Government of Serbia will pass the new regulations on Thursday (April 16, 2009), which will make it possible for the privatized companies to reprogram their debts to the state by converting them into the state-owned capital - the Minister of Economy, Mlađan Dinkić, said today (April 13, 2009).

- The privatized companies that regularly pay the salaries and fulfill the obligations from the sales contract, and still have problems with solvency, will be able to ask for certain share of their debts to the state to be temporarily converted into state-owned capital - he said after the meeting with exporters and bankers.

Dinkić said that the decisions would be made for each of the cases and, once the crisis was over, the owners of the companies or new investors would be able to buy that capital back.

As Dinkić announced, by the end of April the Government of Serbia will form a team for "mutual settlement of debts", that is, multilateral compensation that should enable breaking of the chain of debts within one day.