GUIDE Foreign Investors Council October 2008 FIC GUIDE 2008 IMPRESSUM Managing Director Ana Isaković CONTENTS [email protected] Editor in Chief 70 PANAGIOTIS VLASIADIS Tatjana Ostojić Member of the FIC Board of [email protected] Directors, President of the Executive Associate Editor Board of Alpha Bank Mark Pullen 74 DRAGINJA ĐURIĆ Art Director Zlatko Jovanović President of the Banca Intesa [email protected] Executive Board 10 STEIN-ERIK VELLAN Design Assistant 78 ALEXANDER SPERL Tatjana Radojičić FIC President, Telenor CEO CEO of Vip Mobile Editorial contributors 14 THE WHITE BOOK 80 MILAN SAMARDŽIĆ Kristen Dara Kaefer, Ana Stojanović, 15 FOREIGN INVESTMENTS - SIEPA Head of the FIC Legal Committee, Marica Vuković 34 JASNA MATIĆ Partner at Specht Law Office Photo Minister of Telecommunications Marko Rupena, Časlav Vukojičić, 82 IVAN RAKIĆ Stanislav Milojković and Information Society Head of the FIC Taxation Translators 38 MILUTIN MRKONJIĆ Committee, Head of Ernst & Young Snežana Krstić Serbian Minister for Infrastructure Tax Services Executive Director 42 SLOBODAN MILOSAVLJEVIĆ 84 MILOŠ MIRIĆ Sanja Zimonjić [email protected] Minister of Trade in the Serbian Head of the FIC HR Committee, Government Sales Executive Administration Manager of Holcim Marija Urošević, [email protected], 46 SURVEY Srbija’s Petrus Project Marija Savić, [email protected], The PricewaterhouseCoopers EM20 Slobodan Savić, [email protected] Index Editorial Manager 56 LUIZ AUGUSTO HEEREN Tanja Banković [email protected] Member of the FIC Board Directors, Subscription General Manager of British MajaReljić, [email protected] American Tobacco South East General Manager Europe Ivan Novčić 60 GUSTAVO NAVARRO [email protected] Member of the FIC Board of Financial Director Ana Besedić Directors, General Manager of 86 DRAGAN ODŽAKLIJEVIĆ [email protected] Holcim Serbia Head of the FIC Insurance Printing 62 NENAD VUČINIĆ Committee and General Manager Politika AD Member of the FIC Board of of ACB Foreign Investors Directors, Head of the FIC’s ADCPI Council is published by 88 MILOŠ SREJIĆ alliance Committee, Country Director of Deputy General Director of the Sava international Henkel Yugoslavia media Business Centre 66 ISAAC SHEPS 90 MIHAILO CRNOBRNJA Member of the FIC Board of Editor in Chief of the FIC White Book Kneginje Zorke 11b, Directors and Chief Executive Officer 11000 Beograd, Serbia 2008 Phone:+(381 11) 308 99 77, 308 99 88 of Carlsberg South East Europe 93 NENAD GRUBIN Fascimile: +(381 11) 244 81 27 E-mail: [email protected] Head of the FIC’s SEMI (Serbian www.cma.rs Exploration & Mining Initiative) ISSN no: 1451-7833 Committee, Commercial Manager All rights reserved of Rio Tinto for Exploration Europe alliance international media 2008 94 ANA FIRTEL VLAJIĆ FIC Executive Director 97 FIC MEMBERS CONTACTS 6 Guide to the Foreign Investors Council FOREWORD Financial Safe Haven Depositors, debtors and financial institutions could all learn some lessons from the current crisis on the international financial market, such as how significant the responsibility of an institution in charge of supervising the financial sector is. For the National Bank of Serbia, this means not thinking short-term, not paying attention to the ’big ones’ boasting various awards like ’the best bank’ or ’the best banker’, not to be swayed by real estate prices, since they are certain to be re-evaluated, but just to think about the long-term stability of the financial system and elements that Radovan Jelašić, Governor of affect it. the National Bank of Serbia The global market has used this crisis to prove that the most fa- mous and untouchable financial institutions can go bankrupt and be ’voluntarily’ taken over by others overnight. This is especially important for countries with a bad credit rating and a banking sec- tor that has yet to complete its transition and has to dispose of higher adequacy of capital, and for those central banks that have to carry out more restrictive supervision in order to additionally cushion the blow of external shocks, like the very ones that are coming from the global financial market today. The National Bank of Serbia insists precisely on that. So, if we take a look at the Serbian banking market today we will see that we have highly capitalised banks which guarantee stability to their depositors. The adequacy of capital is currently the highest in the region, standing at 28.1%, and we should not forget the fact that three quarters of the banking sector is owned by strategic investors from the EU, which have not been too exposed to the mortgage crisis in the U.S. It is more than obvious that central banks, as supervisors, will have to be more serious and responsible, dealing more with bal- ances and numbers than the outward image of certain financial institutions, since, in the case of a crisis like the current one, the external rating will not help. And when it comes to such distur- bances, the country will try to emerge with the least financial dam- age as possible, while the international financial market ’dries up’ in a second. It is hard to foresee how the global financial market will look after corrections imposed by the current crisis are carried out on almost all countries. Whether we are talking about foreign curren- cy exchange rates, trade imbalances or the quality of the financial sector, one thing is for sure – not everybody will win. Some coun- tries which are used to being considered important and strong will gradually lose their importance. Bearing in mind what is happen- ing in the world, I would like to point out that Serbia is a safe haven in this international financial mess. Political turbulence, which has strongly affected economic life and the country’s economic pros- pects, has calmed down in the last six months. Nobody expected that we were going to get through this period with relatively mild negative consequences that have not caused permanent damage to macro-economic stability. The first half of this year was probably the most turbulent pe- riod since 5th October 2000. I hope that in the coming period Ser- bia will achieve both political and economic stability, since we are finally going to invest more in the future than the past. Guide to the Foreign Investors Council 7 RELIABLE BUSINESS PARTNER Integrated strategy of Telekom Srbija will enable its’ customers to enjoy the benefits of a convergent offering, combining the best information and telecommunication technologies. THE DYNAMIC DEVELOPMENT RECORDED IN a few individuals has completely changed will make it possible for the employees, THE TELECOMMUNICATIONS AND IT SECTOR the approach to this comprehensive and young and educated people, to apply OVER THE PAST TEN YEARS IS HISTORICALLY omnipresent form of communication. their knowledge in the best possible UNPRECEDENTED. IN SUCH A SURROUNDING, Their visionary approach has also changed way. Such a model is certain to stimulate EACH INITIATIVE CAN PRODUCE A NEW the course of business operations in other them to become the driving force in the BREAKTHROUGH IN A CERTAIN FIELD. If we industries. Guided by such experience, introduction and application of new observe the development of Internet only, Telekom Serbia has decided to introduce products and services, by taking a larger we can see that the visionary approach of a new organizational structure which initiative. As one of the country’s leading prepared particularly in accordance telephony, Internet and multimedia companies, Telekom Srbija will with the latest global trend in the content is becoming crucial for the perform all the activities to pave telecommunications field – service application of new technological the path towards the Information convergence. This is also an important solutions and meeting the new society by following the examples driving force of this process which market demands. Such an approach of similar companies in the world’s will be completed until the end of the is vital since Telecom Srbija wishes to most developed countries. The year. Thus the integration of different promote the operation of its business Company’s reorganization plan was technologies, such as mobile and fixed customers through its activities. As a solution for the challenges of the to better solving of the clients’ needs In the desire to promote and facilitate its contemporary business environment, and requests which are continuously in customers’ business activities, Telekom Telekom Srbija has offered the business focus. By developing a two-way relation Srbija was the first company to provide platform which provides better with the customers, a high level of an integrated business offer to the local connectivity, efficiency and productivity understanding was developed concerning market, which offer encompasses all to its customers. That platform their expectations and requests. Trust, the innovative, unique services of the simultaneously represents a powerful and reliability and simplicity represent the mobile and fixed telephony in the best reliable basis for the development and use leading idea in Telekom Srbija’s operation, possible way, completely adjusted to of state-of-the-art telecommunications while the service quality makes the basis of individual needs. Thus, the business services and achievements. The proactive an integrated offer. customers were offered cutting edge- effect and flexibility of the offer contribute services from the portfolio of major world of their work, as well as a better two-way communication. This service, emerging as a product of partnership with local IT company MTC, fosters the Company operations by providing a precise analysis of working hours, assignments of employees and calculation of their salaries. It also ensures better planning and execution of all activities. In order to extend its business offer, Telekom Srbija has launched BlackBerry® solution in a package with attractive BlackBerry smart phones. The service enables wireless e-mail and Internet access, the access to business data and in the local market which provides the contacts on computers and it represents business customers with ADSL packages a unique solution for a more convenient and mobile broadband Internet.