BELGRADE (Serbia), July 11 (SeeNews) - Serbia's government plans to launch insolvency proceedings and sell the assets of state-controlled fertiliser maker HIP Azotara, energy minister Aleksandar Antic said. The launch of insolvency proceedings of Azotara is in line with the government's commitments to the International Monetary Fund (IMF) and to the Serbian citizens, as the company's losses should be compensated through the state budget, Antic said, as quoted in a statement on Tuesday. Despite the efforts of the government to increase the efficiency of Azotara and reduce the raw material costs, the company is not generating positive results, Antic noted. The assets of Azotara will be put up for sale which will enable the new owners to reorganise the production activities without worrying about outstanding liabilities, he added. In September, the IMF urged state-owned gas monopoly Srbijagas to dispose of non-core assets by selling its shareholding interest in MSK Kikinda, HIP Azotara Pancevo and ceramics producer Toza Markovic. According to data from the Serbian economy ministry, the stake of Srbijagas in Azotara stands at 85.06%.
The Serbian government has begun bankruptcy proceedings for failing state-controlled fertiliser company HIP Srbijagas, and said it will cover the firm's losses so potential buyers of the company's assets will not be burdened with outstanding liabilities. The move follows a call from the International Monetary Fund for state-owned gas monopoly Azotara to divest its non-core assets, including Srbijagas, as well as MSK Kikinda and Toza Markovic. Azotara owns more than an 85% stake in Srbijagas.