Serbian state asks Geox to pay back the state subsidies it received

The Technic Development Company in Vranje, Geox’s company in Serbia, had received state subsidies in the amount of 68,95 % of their total investment in Serbia, which was contrary to the rules in force at the time, as the percentage should have not been higher than 20 of the total investment made, says Serbian State Aid Commission.

Therefore, the State Aid Commission ordered the Ministry of Economy to take measures against Technic Development without delay and ordered the company to pay back the excess subsidies, i.e. 414 million dinars plus interest on arrears, from late 2016 (when the investment was made).

According to the contract the company signed with the state in 2012, the value of its investment was 2.2 billion dinars. In that period, the company received 1.5 billion dinars in subsidies.

In October 2012, the Ministry of Finance and Economy had decided to allocate 11.25 million euros (almost 1.3 billion dinars) as state aid to this shoe producer. According to the legislation of the time, this subsidy was granted on the basis that Technic Development (Geox’s company in Serbia) would hire at least 1,250 workers, for which it would receive 9,000 euros per each new job from the state, a total of 11.25 million euros.

It would also provide another 100 million dinars in February 2013 to finance the levelling of the land for the construction of the factory. The authorities in Vranje, where the company was established, gave Technic Development a plot of land worth 61 million dinars for free and the company was exempted from paying rent for the levelling of the building land (in the amount of 11.9 million dinars) and the local commercial municipal tax (403,698 dinars).

The Vranje authorities also financed the preparation of the land and construction of utility infrastructure in the amount of 38.7 million dinars. This included the construction of access roads, sewers, water supply network and the like. Vranje also gave more than 1.3 million dinars for the construction of the cable line, which cost a total of 17.5 million dinars.

(Nova Ekonomija, 08.11.2021)

https://novaekonomija.rs/vesti-iz-zemlje/dr%C5%BEava-geoksu-platila-70-odsto-investicije-sada-tra%C5%BEi-novac-nazad

 

This post is also available in: Italiano

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