President of the Foreign Investors Council (FIC) Costin Borc said the biggest investments in Serbia can be expected in the area of agriculture, but that the arrival of major investors should not be expected this year on account of the crisis.

The biggest opportunity for foreign investments in Serbia is in agriculture, and recently we have seen a lot of investments in the industry. Serbia has huge potential and an excellent workforce, Borc told Radio Television of Serbia on Tuesday.

Asked about the expected reaction from foreign investors in light of the Eurozone crisis and the coming elections in Serbia, Borc said he believes 2012 can be important in this regard.

We saw an economic slowdown toward the end of last year, so we should not expect major investors to come to Serbia this year, Borc said, adding the greatest obstacles to doing business in Serbia are the quality of the business environment and lack of order.

He reminded there was a lot of uncertainty about local tax rates and how the government would finance its obligations, which is not good.

The FIC president said the Serbian government is expected to implement the adopted legislation and continue the dialogue with the EU this year.

Borc said the government should help the expected investments in agriculture by not putting up barriers to successful operation.

Asked how important EU candidate status is to investors, he said the EU primarily brings stability, and legal, tax and monetary order.

According to him, this provides the security needed to make business plans, for both foreign and domestic investors.

Borc said he is certain this will contribute to more investments in Serbia.

BlackSeaGrain