VUJOVIC: Postanska Stedionica to be put back on its feet

(Dusan Vujovic) The Minister of Finance Dusan Vujovic stated on June 13 that the government will put Postanska Stedionica back on its feet and that it remained to be seen whether it needed recapitalization after it had freed itself from bad loans.

- Postanska Stedionica currently has more assets than it needs, and after it has resolved its risky loans, it will be seen whether the recapitalization is necessary. They have around RSD 120 billion in assets and are more liquid than the law prescribes is needed – pointed out Vujovic and added that the balances would become apparent only after the business records had been adjusted.

According to him, there has been a change at the top of the management structure of Komercijalna Banka, and there are talks about redirecting Postanska Stedionica, by using the model normally applied by such institutions in the world, towards the so-called retail business, that is, away from entering into risky commercial operations.

- Instead, it should finance the citizens, small and medium enterprises, invest in state bonds and finance large public enterprises in accordance with their presence in the deposit structure – pointed out Vujovic.

He also said that as part of the strategy, with the state's preferences stated in a regulation, Postanska Stedionica would design a business plan which would be gradually adjusted to fit them.

- They first need to get rid of problematic loans and to gradually reorient away from commercial loans – emphasized Vujovic and added that Postanska Stedionica was neither competent enough nor did it have necessary human resources for the task.