Serbia Corporate Sector Needs More Liquidity Loans, Novosti Says

Dec. 1 (Bloomberg) -- Liquidity in Serbia’s corporate sector is “catastrophic,” with accounts of more than 63,000 companies currently blocked due to their inability to pay their debts, Vecernje Novosti newspaper reported, citing Milos Bugarin, who heads the country’s Chamber of Commerce.

He said the number of blocked accounts would have been even higher had it not been for state-subsidized liquidity loans this year, which the authorities intend to phase out in 2011, the newspaper quoted Bugarin, who also urged the government to continue with the financial support.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net