Subara: Most companies will go bankrupt

Speaking at the 15th Serbian Economic Summit, Subara said that for the time being 188 enterprises are going bankrupt, while 17 firms will be protected from creditor claims for another year.

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The largest number of companies will unfortunately go bankrupt because the first decision on restructuring made in 2002, which was the right decision, was followed by several bad decisions made for the purpose of protecting individual companies or gaining political points, Subara explained.

He added that 144 companies under restructuring owed the state 4 billion euros. Most of these companies are no longer able to maintain normal operation and continue to report financial and business losses that over the past five years cost the state around 490 million euros in direct subsidies, Subara specified.

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He noted that the 2014 call for privatization turned out to be premature, as more time was needed to prepare the privatization model and documentation, adding that for that reason the amendments to the law on bankruptcy will most likely introduce the possibility of acquisition of bankrupt companies.

(Telegraf.co.uk/ Tanjug)