Aid for investors doubled - Bigger subsidies for investors in another eleven towns

The Government of Serbia yesterday adopted supplements to the Regulation on Terms and Manner of Attracting Direct Investments. In that way, it expanded the circle of towns of special interest in which investors are able to count on bigger government subsidies for each new job they create.

In addition to previous 40 devastated municipalities and four industrial centers - Nis, Zajecar, Kraljevo, and Novi Pazar, the list now includes 11 new communities with more than 50,000 inhabitants and an unemployment rate above 20 percent.

The census is the unemployment rate of over 20 percent because the Serbian average is lower. By reducing the unemployment rate in places where it is the highest should also reduce huge regional differences in the country.

- The idea is to revive large industrial centers in 15 local self-governments - Minister of Economy Nebojsa Ciric explained. - We have recognized that investors come to Serbia not only because of incentives, but also because of quality and trained manpower. The idea is to employ some old plants that are now out of work, as well as to attract "greenfield" investments. Pirot, Kragujevac and Zrenjanin are exempted, since there are free zones there.

Businessmen expected the government to adopt the plan for rescheduling of their loans. Although announced for Thursday, there was no adoption of that measure by the government.