Serbia adopted on Friday a set of economic laws which foreign investors said would help boost direct investment in the country which is struggling to attract overseas businesses.
Parliament passed laws on VAT, energy, corporate tax, sales tax, bankruptcy, lotteries and pharmaceuticals, just a fraction of some 40 bills also asked for by multilateral lenders.
The laws were primarily designed to boost state coffers as the country seeks to meet a tough budget deficit target of 2.5 percent of GDP imposed by the International Monetary Fund, while maintaining stability and keeping inflation on track.
The adoption of the laws will allow Serbia to win $80 million of new World Bank support in two tranches, giving the government some breathing space until it cashes in receipts from the privatisation of the fifth largest bank Jubanka later his year.
The energy law will pave the way for the restructuring and privatisation of the sector and liberalisation of the electricity market, while the bill on pharmaceuticals will introduce European Union quality standards in local practices.
Investors, the World Bank and the IMF, still want Serbia to pass laws on avoiding conflict of interest, on foreign trade, urban planning, investment funds, denationalisation, restitution of land and business property, mortgage and an antimonopoly law.
They also want new laws on securities and financial markets to allow issue of shares in foreign currency.
Serbia hopes to woo $700 million worth of foreign direct investment and privatisation receipts in 2004. Its budget gap in the first half of the year stood at 17.2 billion dinars ($297.1 million) out of 30 billion dinars planned for the whole year.