WORLD BANK SUPPORTS SERBIA WITH $80 MILLION
Contacts
:
Washington:
Miriam Van Dyck (202) 458-2931
mvandyck@worldbank.org
Belgrade:
Vesna Kostic (11) 302-3723
vkostic@worldbank.org
WASHINGTON, June 10, 2003—
The World Bank Board of Directors approved today a
US$80 million
IDA credit for Serbia and Montenegro for the
Private and Financial Structural Adjustment Credit
(PFSAC II) that will provide financing for the Government of Serbia with the aim of supporting regulatory, institutional, and structural reforms in private and financial sectors.
The overall objective of the PFSAC II is to help the Government of Serbia improve the business environment, strengthen the financial system, privatize and/or liquidate majority state-owned banks, and privatize and restructure socially-owned enterprises.
Reform of the business environment aims to improve business entry through a better registration system; facilitate efficient business operations through reforming the Enterprise Law; build capacity for regulatory reform and improve enterprises’ access to finance; and reduce barriers to the efficient exit and redeployment of non-productive assets.
Introducing a better supervision and regulation of banking and insurance sectors, which will lay out the foundation for the future implementation of a sustainable deposit insurance scheme and create adequate mechanisms to prevent money laundering, should strengthening the financial system.
The banking sector reforms will deepen and broaden intermediation and will bring reputable strategic investors to the local market, while the enterprise sector reform will put under-performing state-owned enterprises to more productive use.
For more information about the World Bank in Serbia and Montenegro, please visit:
http://
www.worldbank.org.yu
For more information about this project, please visit:
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_03032004092666
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