Agreement on writing off of the 70 million dollars debt of NIS towards Sinochem

The Minister of finance and economy, Mr. Bozidar Djelic, member of the Serbian Government delegation in official visit to China, declared for the Beta News Agency that the Serbian Government representatives “shall come back with good news concerning the future economic cooperation between the two countries”, considering the agreement reached today on the writing off of 70 million dollars debt of the Serbian Petrol Industry (NIS) towards the Chinese company Sinochem, for the previous supplies of crude oil.

Mr. Djelic emphasized that this agreement on the servicing of the debt for crude oil, that Serbia imported from China during the 90’s, had been finally reached, after five years of negotiations – especially intensified during the past three months in talks held both in Belgrade and London. Concerning the stipulation on the payment of the debt reminder in the current of the following eight years beneficiating a favorable interest rate, the Minister stated that the citizens of Serbia won’t not feel any repercussion of this debt burdening, since it represents a commercial debt contracted by NIS for the importations of oil at market prices – which was later distributed in Serbia at discount prices.

According to his terms, Sinochem became an ally for the consumers goods exportations from Serbia towards China, and starting from March 2004, this company shall, according to the agreement provisions, establish a list of products susceptible to be placed on the Chinese market. According to Mr. Djelic, this should contribute to the reduction of the Serbian commercial deficit with China, amounting 190 million dollars for the past year.

A delegation of Serbian businessmen is also in visit in China, where it held talks with Chinese business representatives on the economic cooperation possibilities, while the representatives of the “Lola” company signed an agreement with a Chinese company worth 4.5 million dollars.