BELGRADE (Serbia), February 7 (SeeNews) – Serbia's government plans to shortly launch a procedure for the closure of the mines of state-owned coal mining company Resavica, a government official said.
"The government will soon begin a process for the shutdown of the Resavica mines under a special programme," state secretary at the economy ministry, Dragan Grgurevic, said on Thursday, as seen in a video file posted on the website of Serbia's parliament.
In November 2016, the International Monetary Fund recommended that Serbia take decisive action to end the drain on public resources by large utility companies and other state-owned enterprises, calling for clear plans for the resolution or restructuring of a number of companies, including Resavica.
The Serbian government has not yet adopted a plan to close the unviable Resavica coal mines over concerns about the social impact from potential downsizing, the IMF said in a staff report following the completion of the third review under the Policy Coordination Instrument (PCI) in December.
Resavica operates nine underground coal mines in Serbia. The company currently has 4,021 employees, according to data published on its website.