EBRD indispensable for EPC, "Danube" and Postal Saving’s Bank rather than "Telekom"

EBRD may increase business operations and value in the companies "Danube insurance", EPC (Electric Power Company) and Postal Saving’s Bank rather than "Telekom", experts say.

- In my opinion EBRD is not the best solution for "Telekom", because it would be just an intermediate step to final privatization. Is it necessary for "Telekom" at all, that is a question – said Milojko Arsic for the Tanjug.

As he told, the value of "Telekom" has decreased for EUR 1 billion over last five or six years, therefore EBRD could possibly halt the trend, but not improve its performance.

- That is why the best option would be to find a strategic partner for "Telekom" – claims Arsic. Asking him whether EBRD possibly wants to purchase a number of shares in "Telekom" in order to sell it later at considerably higher price, Arsic says it is completely legitimate aim of any purchaser.

- Different ways of privatization would have different consequences to "Telekom" and the Government. If EBRD increased share capital in "Telekom", it would be used for investments and development of the company, but in the other case, if EBRD purchase a number of shares from the Government, that money would directly go into budget – says Arsic.

EBRD is helpful for those companies which are still owned or governed by the Government and where it is vital to increase business operations.

-Therefore, EBRD would be a valuable solution for "Danube insurance" or Postal Saving’s Bank – a professor at the Faculty of Economics points out.