Jagodina, Oct 10, 2003 - Serbian Deputy Prime Minister Cedomir Jovanovic said in Jagodina on Friday that a consistent monetary policy carried out by the Serbian government has strengthened the national currency, which now inspires confidence to both producers and banks. He announced that the government would continue to slash inflation in 2004, when the inflation in Serbia is expected to be lower than those in the countries poised to join the European Union (EU) in 2004.

The visit to Jagodina by the government's delegation led by Jovanovic is part of a campaign to gather information and experiences needed to draw up a national strategy for EU accession.

Jovanovic and Assistant Minister of Economy and Privatisation Slobodan Petrovic met with Pomoravlje district businesspeople and reiterated that Serbia's privatisation model is based on monetary stability, liberalisation of the market, and rapid privatisation.

Jovanovic said that Serbia's monetary stability has kept the inflation at 7%, largely thanks to the Serbian economy, which has achieved outstanding results over the past two and a half years.

Speaking of the liberalisation of the market, Jovanovic said that it calls for open borders but also raises the issue of tariff and non-tariff protection of Serbia's products.

So far, 17 companies have been privatised in the Pomoravlje district, with 22 more set to go private, said Jovanovic, adding that the region has posted exports of $21 million and imports of $33 million. It also faces very high unemployment, he said.

According to Jovanovic, the Serbian government has approved substantial assistance to this district, with 90 million dinars invested in 2003 alone. The government's subsidies have helped boost production in Paracin-based glassworks Fabrika Stakla and Jagodina-based cable producer Fabrika Kablova, he said, adding that the state has also taken over Jagodina brewery's debt of 500,000,000 dinars.

Following the meeting with businesspeople, Jovanovic, Minister of Agriculture and Water Management Stojan Jevtic, and Assistant Minister of Economy and Privatisation Slobodan Petrovic attended the opening of a new production line in the local meat-packing plant Juhor.

Juhor has built a new slaughterhouse, which cost €4.6, in a move that is expected make Juhor the first Serbian-Montenegrin meat plant to be allowed to exports to the EU and the US.

Jovanovic also spoke to local trade unions, municipal authorities, and non-governmental organisations.