Business Dialogue - CorD Magazine, June 2018 Issue, No.164

BUSINESS LEADERS’ MEETING POINT

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DRAGANA KRSTIĆ, GENERAL MANAGER OF VOLVO D.O.O. (LTD.) NOVI BANOVCI

MARKO PETROVIĆ, MANAGING DIRECTOR OF VISARIS D.O.O. (LTD.)

Volvo, Ruler Of Roads And Construction Sites

The World Is Conquered By Good Teams, And We Have One

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ALEKSANDAR MARKOVIĆ, METALAC GROUP CEO

PROFESSOR JASNA BALOH, DIRECTOR AND FOUNDER OF THE DOBA BUSINESS SCHOOL, MARIBOR

There’s Something In Metalac Polka Dots

Education For The 21st Century

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NEW SURVEY OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE

ANTONELLO FACCHINI, CREATIVE DIRECTOR OF BRAND “BARBOLINI”

Conditions For Doing Business In Serbia

Belgrade’s Men Appreciate Italian Fashion

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CORPORATE

DRAGANA KRSTIĆ, GENERAL MANAGER OF VOLVO D.O.O. (LTD.) NOVI BANOVCI

Volvo, Ruler Of Roads And Construction Sites Since the opening of its first factory way back in 1928 to the establishment of its company in Belgrade, Volvo has recorded constant increases in sales. Their vehicles are synonymous with road cruisers, reliability, endurance and a guarantee that every job, whether in construction or transport, will be completed successfully

brand to have three fully equipped and professionally staffed sales and service centres in our country (Novi Banovci, Novi Sad and Čačak). During our first twenty years in Serbia, we have amassed thousands of loyal customers

“E

very buyer, owner and user of Volvo trucks can rely on the company’s support always, and in that we also differ from the competition. During twenty years of working in Serbia, we have amassed thousands of loyal customers and hundreds of partners among transport companies. That’s a wealth that has no price.”

■ Volvo Trucks this year commemorates 20 years of operations in Serbia. You have been part of the team from the very start, and in some way you have developed and progressed personally together with the company. What has marked Volvo’s work in the region during the past two decades?

- In the past two decades, “Volvo” d.o.o. has become a leading company in the truck sector in Serbia, not only in terms of sales volumes, but also in terms of infrastructure. We are the only 28 |

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The year is coming in which, due to European regulations, all hauliers that want to engage in international transport will have to possess vehicles with the minimum Euro VI environmental standards. This will render several thousand cabs and solo trucks “ripe” for replacement and established business links and friendly relations with hundreds of transport companies, which is a wealth that has no price. It is a great honour for me to have been part of Volvo’s team in Serbia for twenty years, and I am grateful that I have been able to progress in a business sense, in parallel with the growth of the business activities of “Volvo” d.o.o.

■ Your local anniversary also coincides with the birthday of Volvo, which is this year celebrating a respectable 90 years of doing business in more than 130 countries. To what extent can the local market absorb Volvo products, in the broadest sense, primarily with consideration for economic capacities?

- Due to economic potentials that are still limited, Serbia is a relatively small market for the truck industry, but it is not an insignificant one, which is precisely why Volvo decided to open its own company in Belgrade – “Volvo” d.o.o. – at the end of March 1998. Our operations over the past twenty years have confirmed that the decision was totally justified, because sales of the entire range of Volvo Trucks, despite occasional market oscillations, have risen constantly. In truth, for a full two decades the structure of sales has been dominated by vehicles from the heaviest family - FH, haulage cabs and solo trucks for longhaul transport, which are very popular among Serbian hauliers engaged in international transport. As such, it is no surprise that we have sold more than 4,000 new units from this family over the last 20 years. Over the last few years,

in conjunction with intensification of the construction of large infrastructure facilities, primarily roads, there has also been growing demand for dumper trucks and “construction” trucks from the FMX family. However, our vehicles from the midrange FM family, and even the lightest FL vehicles, are gladly found within fleets, primarily those of utilities enterprises and power distribution companies.

We are encouraged by the fact that we

primarily trucks for long-haul transportation.

■ Volvo’s collaboration with customers doesn’t end with payment. On the contrary, from the company’s perspective that’s just the beginning.

Why does Volvo deals with customers in some segments practically forever?

- That has been the business philosophy of the company since the appearance of

any part of Europe!

We certainly strive to ensure that our warehouses are always stocked with the most important and vital parts for engines, gearboxes, suspension etc.; actually, we have all parts needed for entire trucks or buses, even for vehicles that are several decades old. And if there is some part that we don’t have in our possession, we will try to ensure it arrives in just a few days, regardless of where in

COMPLETE TRANSPORT SOLUTIONS – 20 YEARS IN SERBIA WITH YOU

have been approached by increasing numbers of specialised customers in the last year, so we recently delivered the first specially equipped trucks for the transport of timber, and as this publication goes to print we will also be delivering a special vehicle for use in the process of washing aircraft.

■ Volvo proudly announced record sales results in 2017. Do you already have – on the basis of first quarter results – estimates for this year, at both the global and local levels?

- Quarterly results at the global level have yet to be published. We are currently summarising results at the local level, and according to initial analysis we are recording stable sales in 2018 compared to the same period of 2017. We are counting on this trend continuing, because for the next few years the Serbian market will be “hungry” for modern vehicles,

We have ever more specialised customers that we are providing with special purpose vehicles. We recently delivered the first trucks specially equipped for the transport of timber, while we are also planning to deliver a special vehicle for washing aircraft the first Volvo truck, way back in 1928, and this is one of the things that set us apart from the competition – constant care for the customer, but also the user of a Volvo truck. That support is multifaceted: from training drivers to drive economically and safely, and to treat their vehicle as a home away from home, via advice on maintenance, to the swift and high-quality provision of services in

the world it is currently located! The buyer-owner-user of Volvo vehicles is our priority!

■ Your company website includes the statement: “Our promise to the world – responsibility at the heart of everything we do”. Where does responsibility begin and end when it comes to Volvo?

- Our responsibilities begin with the first turning of a screw on the assembly line in the plant where Volvo Trucks are made – we guarantee the quality, reliability and longevity of all products – and end with our special care for the environment – ensuring that we leave the smallest possible ‘footprint’ during production and usage, and at the end of the life of a Volvo truck. In all of this, of course, is our commitment to the customer and constant striving to satisfy all their requirements and needs.■ JUNE

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LOCAL NEWS

OBSESSION

EUROPEAN INVESTMENT BANK (EIB)

“I’m obsessed with Kosovo. Without resolving that problem, everything I’ve achieved so far won’t be sustainable. The first crisis will kill us.”— ALEKSANDAR VUČIĆ, President of Serbia

TERMOVENT

Billion Euros For Serbian Infrastructure And Digitisation TherecentWesternBalkansSummitinSofiasaw the EIB and Serbia sign a MoU for the approval of investments in Serbia worth a billion euros, thus reaffirming the EIB’s support for key connectivity infrastructure, digitisation, rural development, energy safety and urban transport. The signing ceremony was attended by Serbian President Aleksandar Vučić, EIB President Werner Hoyer, European Commission President Jean-Claude Juncker, President of the European Council Donald Tusk and Bulgarian Prime Minister Boyko Borissov.

According to an EIB statement, this MoU confirms the EIB Group’s support for key connectivity infrastructure, including the Niš-Pristina-Tirana Highway of Peace, the digitisation of Serbian schools, local and rural development, energy safety and urban transport.

25th Anniversary of Termovent Over the course of the past 25 years, company Termovent has established business cooperation and carried out more than 100 projects around the world – from the region, via the EU, Russia and the United Arab Emirates, all the way to India.

EUROBANK

Commemorating 15 Years In Serbia Eurobank is celebrating its 15th anniversary of successfully doing business on the Serbian market. The Bank has grown and expanded during the 15 years of its operations, increasing the number of employees and branches, implementing new technologies and offering innovative products and services tailored to the needs of clients. Eurobank is today among the Serbian market’s leading banks. Eurobank Executive Board Chair Slavica Pavlović welcomed the Eurobank Group representatives arriving in Serbia for this special occasion - Fokion Karaviasa, Eurobank Group General Director, Stavros Joanow, Deputy Director General of Eurobank, and Mihailis Luis, Director for International Activities of the General Department of Eurobank and Chairman of the Board of Directors of Eurobank Serbia.

“We are proud of the fact that we are the bank of first choice for our clients. Over previous years we have consolidated our operations, continued with our moderate growth and placed ourselves among the top 10 banks. Eurobank achieved pre-tax profits of 2.5 billion dinars in 2017, which is 17% more than in 2016,” said Pavlović.

FIC

Dialogue For Change Dedicated To Labour Regulations The Foreign Investors Council held its first ‘Dialogue for Change’ event of the year, this time dedicated to labour regulations. The format of this event has changed since last year, with it now being a closed, high-level event that this time gathered together only CEOs of top FIC employers, Labour Minister Zoran Ðorđević and Assistant Minister Bojana Stanić. The main aim of this dialogue was to achieve

Celebrations of this significant anniversary for Termovent brought together a large number of partners, associates and representatives of companies from the region.

Guests were welcomed to the reception commemorating this company’s silver anniversary by Termovent Komerc President Dušan Perović, General Manager Andrija Perović and COO and CRE Department Head Miloš Perović.

a better understanding of how to formulate labour regulations that will simultaneously stimulate employment and better protect the rights of both employers and employees.

As a business association that promotes EU values and principles, the FIC provides recommendations that should bring EU standards to the Serbian labour market.

The discussion with the Minister and Assistant Minister was strategic, with CEOs of some of the biggest employers on the market openly sharing their personal experiences and opinions. Their key message was that the local labour force represents one of the key advantages of the Serbian market and that there is great potential to make Serbia one of the most attractive investment destinations.

HEINEKEN

First Decade In Serbia Commemorated Prime Minister Ana Brnabić visited the Heineken-owned Zaječar Brewery to mark the tenth anniversary of this world-renowned brewer’s operations in Serbia. Speaking on this occasion, PM Brnabić said that the business climate in Serbia is good, as evidenced by investors like this Dutch beer producer that came to Serbia ten years ago and continues to expand its operations.

With HEINEKEN Serbia General Director Viktor Gillhofer as her host, the PM toured Zaječar Brewery and congratulated the company on a decade of successful operations in Serbia, noting that this famous company has invested s more than €200 million in Serbia over the past ten year and directly employed over 300 people.

Brnabić also stressed that the Netherlands is one of Serbia’s 20 most important trading partners and an even more important political partner. She noted that Dutch investments in Serbia have been increasing over the past five years, with companies from the Netherlands having invested more than €2 billion in Serbia to date.

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EU “EU talks of joint trade zones and other technical issues miss the point. Of course we must meet EU conditions on the environment, the economy and the rule of law, but we’re well on the way.”— HASHIM THAÇI, President of Kosovo

Placements & postings appointments@aim.rs

▪ MILICA LUNDIN, NEW PRESIDENT OF IWC

Milica Lundin is a Swedish musician and culture manager. Born in Cetinje, Montenegro, in 1963m she grew up and completed her basic education in Belgrade. Her studies later took her to Moscow and, after she got married, Vilnius. She worked as a piano accompanist, piano teacher and research assistant. She has also studied art history and cultural management in both Stockholm and Belgrade.

Due to her husband’s diplomatic vocation, Milica has resided with her family in Sweden, Lithuania, Russia, Germany and Serbia.

Mrs Lundin was Secretary to the Association of Spouses of Swedish Foreign Ministry Officers from 2006- 2010, while she is also a member of the Association of Swedish Piano Teachers.

A mother of two girls age 20 and 23, she is currently in Belgrade in her capacity as spouse of the Swedish ambassador.

NALED

SRBIJA KARGO

Electrical Waste Management Improving

Eight New Multi-System Locomotives

Serbia today has over 11,000 manufacturers and importers of products that turn into special waste streams after use, but only 49% of them have submitted annual reports to the competent institutions confirming the amounts sold in 2017. These reports form the basis for establishing and collecting fees for managing these products once become waste. Companies

Serbian rail company Srbija Kargo has bought eight multi-system locomotives made by Siemens AG Austria for nearly €32 million, funded by the EBRD loan. “The new multi-system locomotives will be delivered by the end of March 2019, much sooner than initially planned. Serbia will be the only country in the region to have such modern multi-system locomotives,” said Zorana Mihajlovic. – Serbia will be the only country in the region to have such modern multi-system locomotives – Mihajlovic says and emphasizes that Serbia thereby also gains advantage in the Transport Community, headquartered in Belgrade. The sales and purchase agreement was signed by the acting director of Srbija Kargo Dušan Garibović and representatives of Siemens.

“In the next four to five years, Srbija Kargo will invest more than €50 million for overhaul of diesel and electric locomotives to be used on reconstructed and modernized railways,” said Gaqribović “Agreement with Srbija Kargo is very important for the company as it marks a turning point for the upcoming jobs planned in Serbia,” said Udo Eichlinger, CEO of Siemens Serbia.

GAZPROM NEFT

BRITISH INTERNATIONAL SCHOOL

Interested In Serbia’s Petrohemija Spring Charity Bazaar 2018 that do not pay this fee represent unfair competitors for responsible businesses, since the fee accounts for over 10% of the final price of the product, which represents a disadvantage for those who buy from conscientious vendors.

“We must establish fair market conditions with comprehensive fee collection,” said NALED Managing Board Member Stanka Pejanović speaking after a working meeting of NALED members and partners with Environmental Protection Minister Goran Trivan.

According to her, “the goal is to improve the unified electronic registry of manufacturers and importers, and to change procedures in order to improve the system of fee collection and the process of collecting waste in local governments.

Explaining plans, Minister Trivan said that “management is the main priority of the Ministry, and this project will gather representatives of government, businesses, the civil sector and the academic community, and will use the experience of countries that are ahead of Serbia in this field”.

Russia’s Gazprom Neft and its local subsidiary NIShaveexpressedinterestinthelocalpetrochemical unit HIP-Petrohemija, and in the forthcoming period talks with the prospective buyer will intensify, Serbian Energy Minister Aleksandar Antic said after a meeting in St. Petersburg with representatives of Gazprom. The two discussed higher natural gas imports amid robust industrial

growth in Serbia and further expansion of Gazprom’s subsidiary NIS, as well. HIP-Petrohemija JSC is the largest producer of petrochemicals in Serbia and an important company within chemical industry of Southeast Europe.A Kazakh petrochemical company is also interested in HIP-Petrohemija, as announced by President Aleksandar Vucic during his visit to Astana last June. Vucic didn’t reveal the name of the company. The Serbian Ministry of Economy issued in March 2017 a public call for letters of interest for three state-owned chemical plants, including HIP-Petrohemija.

On Saturday, 19 May, theBISschoolcommunity held another successful charity bazaar event entitled “Seventies Disco Party”. Old gramophone records and disco balls greeted the visitors at the entrance to the school and in the main stage area. The event included a fashion show featuring seventies-style costumes. Although the event started with a sunny cool morning, the weather turned, when a heavy shower threatened to interrupt proceedings. This sudden weather change however didn’t stop the enjoyment as the BIS students, parents and staff all started singing and dancing to disco music on the central stage in the rain (see the BIS facebook page for videos)! The visitors at the event enjoyed stalls selling food of international cuisines and various international souvenirs. In addition, there were numerous stalls with activities for children such as a bouncy castle, face painting, and other games. As in every year the highlight of the bazaar was the raffle draw with many valuable prizes including weekends at exclusive hotels, dinners at fine restaurants, spa vouchers, as well as themed gift baskets prepared by each one of BIS classes.

The proceeds of this most successful BIS bazaar will be donated to the University Children’s Hospital in Tirsova (Department for Hematology and Oncology). We look forward to seeing you all next year…

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CORPORATE MARKO PETROVIĆ, MANAGING DIRECTOR OF VISARIS D.O.O. (LTD.)

The World Is Conquered

By Good Teams, And We Have One Serbia’s only manufacturer of digital X-ray devices, private company Visaris, exports as much as 85 per cent of its production to twenty countries around the world, but mostly to the U.S., which serves as the best confirmation of their quality. Judging by plans and announced deals, it seems that this company’s time is yet to come

W

e are competitive thanks to our development team, which creates a high-quality product at a reasonable price. Apart from that, from the very beginning we have adhered to the principle of direct communication – straight talk, which implies sincerity even if that costs us a contract. And that’s something the world appreciates ■ In just 15 years of operating, you have entered into the company of the world’s best producers of digital X-ray devices. What does it feel like to stand shoulder-to-shoulder with, and often even ahead of, companies like Siemens, Kodak, Philips and other giants?

- It’s great to be in the company of the best, but that brings with it great responsibility and an obligation to improve and advance. Fortunately, we offer a product that isn’t subjected to impulse buying, but rather implies a complex decision-making process on an investment, and in that sense the brand’s size or level of recognition is not a decisive factor. Moreover, the area in which we operate is extremely well regulated, so the number of competitors and customers-users is reduced to the maximum possible extent. This means 32 |

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that, provided you have good references and an appropriate approach to potential clients, you have a much greater chance of establishing cooperation. It is for this reason that we have adopted

We would like there to be another company in Serbia dealing with this business, because that would enable us to more easily consolidate our interests and would represent a driver that the state could recognise and support the ’straight talk’ principle of direct communication, which implies that we are always sincere, even if that costs us contracts. Before establishing any kind of cooperation, we strive to provide the client with that which is most valuable to them, and that is good advice.

This year we are celebrating 15 years since our establishment, just like CorD magazine, so we also wish you a happy birthday and for the next 15 years to be even more successful and meaningful.

■ How superior are your appliances to conventional radiological devices? Is digital radiographic diagnostics safer for both radiologists and patients than 3D devices like CT scanners?

- Digital devices produce a higher quality image with lower doses of radiation, and all in just a few seconds. Furthermore, those images are made in a digital format, enabling the creation of permanent archives, as well as rendering them immediate visibility anywhere in the world with an internet connection. Doctors are increasingly using this method due to it having the most favourably small dose of radiation and due to the diagnostic content of the image. 3D modalities, including CT scanners, are undoubtedly very significant and useful techniques, but they are fortunately not a necessity for the vast majority of patients.

■ You are the only company in Serbia to produce a universal digital X-ray apparatus for recording images of patients in all positions. How many are there in Serbia?

- We have about 50 installations in Serbia at present and, thanks to the favourable ratio between price and quality, we expect this number to increase in the period ahead. Although the equipment

used in Serbia is on average obsolete, the process of budgeting and conducting procurement processes for public institutions is unnecessarily complicated, slow and often illogical.

much does Visaris contribute to the development of Serbia’s economy?

- We rely on foreign suppliers for parts not manufactured in Serbia, but for everything else we use domestic suppliers.

We foster lasting and fair relations with everyone. Alongside the multiplier effect on suppliers and obvious contributions in terms of taxes and foreign exchange

inflows, I consider Visaris’s greatest contribution its message to young people in Serbia that, just like in sports, we can also prove victorious in the world when it comes to production and services.

■ You currently export to 21 countries ■ Your devices are 20 to 30 per cent cheaper than devices produced elseon six continents and have more than where in the world that offer the same 500 installed digital systems. What performance. How have you are your plans for expandmanaged this? ing your business?

- Certain components, such - We find ourselves in a very dynamic phase of develas flat panel detectors or genopment, with our refererators, are purchased by all ences working for us. We world manufacturers from the have matured enough and same suppliers, so our price proven that we are a stable competitiveness is reflected and long-term partner to in the intellectual part of the our clients. product. We can give thanks We will expand our busifor this to our development ness in three directions: team, which gathers together firstly through our distop computer programmers, tributors under the “Visaris” mathematicians, physicists, brand; secondly through mechanical and electronics service production for engineers, as well as a large large world brands, where number of external associated the Visaris name does not in the fields of biomedical appear at all; and thirdly engineering, radiology and through the development of others. This has allowed us to a new generation of prodperfect the technique of converting raw X rays into images ucts in cutting edge dynamic on screen, which is also the imaging technology, where most complex part of the dewe plan to offer the world 3D vice. Apart from that, we also solutions for X-ray cabinets. have our own solutions for The world’s biggest manurobotics, internal communicafacturers are also heading tion and the synchronisation in this direction, so we are of mechanics, electricity and radiapleased that we will again be able to Thanks to digital images tion, which means that the “eyes, compare ourselves to the best. stored on a computer and brain and nervous system” of the on the Cloud, second device are a work of Serbian logic.

■ You provide the users of your independent opinions, which Technical professions comprise the devices with support 24/7. We predominant profiles among employare required for a large number presume that you are also unique ees. We employ around 50 people, in Serbia in that sense? of medical examinations, can 20 of whom work in development, - In Serbia it only pays for Visaris be quickly obtained even which we consider our greatest sucto provide support 24 hours a day, from a doctor who is on the cess, as there are few private compabecause we have a large number of nies in Serbia that invest so much in clients outside the country, includother side of the world. their own technology and personnel. ing in Australia, Cuba, Taiwan, the Furthermore, we no longer We have people from all schools and United States, South Africa and use various chemicals and other distant locations. This means colleges in Serbia, but we are also nondegradable celluloid, that we are always able to be availinterested in attracting high-quality able to our partners and clients personnel from foreign universities. with which we contribute to both in the country and abroad, preserving a healthy and we see that our users appreci■ Do you rely on domestic or forenvironment ate that very much. ■ eign associates and suppliers? How JUNE

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REGIONAL NEWS

VALUES “Being anchored in the European Union means sharing values and principles, including respect for the rule of law, independence of the judiciary and freedom of expression – because the European Union is first of all a community of values and law.” — JEAN-CLAUDE JUNCKER, European Commission President

CROATIA

Bitcoin Store Opens In Croatia Company “Bitcoin store” has opened its first outlet in Croatia. It sells bitcoin and other cryptocurrencies, and even issues receipts. The shop is a welcome addition to the steadily growing crypto sector. The team behind the project plans to expand to all major Croatian cities and even other countries in the region.

The new walk-in point of sale is located in the Croatian city of Split. The store currently offers direct sales of bitcoin, ether and other altcoins. The premium is around 5 percent on top of the average prices at Coinmarketcap. Customers are given a receipt and proof of purchase for tax reporting purposes.

Bitcoin Store is arguably the first of its kind in the country, and probably on the Balkans. Bitkonan, the Croatian crypto exchange behind the project, has plans to offer similar OTC (over the counter) solutions to residents and guests of other major cities, starting from Zagreb and Rijeka. Its team also hopes to expand in the region, depending on demand for this kind of service in neighboring countries.

ROMANIA

Bosch Builds New Offices In Blaj German group Bosch has started work on a new office building at its factory in Blaj, central Romania, which produces sensors, electronic components and parts for the industrial technology sector. Bosch will invest over €7mln in the new building, which will have 5,700 sqm of offices on two floors.

Besides office space for about 250 employees, the new building will also host the development labs, which are currently in the factory. Bosch opened its factory in Blaj in 2007. The group has over 6,500 employees in Romania.

ALBANIA

EBRD Funds Albania's Main Rail Link Upgrade Albania has received a €35.5mln grant from the European Union and a €35.9mln loan from the European Bank for Reconstruction and Development (EBRD) to upgrade a rail line and build a new stretch. A bank statement did not specify loan terms, but did say that the project would “make a tangible difference to people and businesses.”

The upgrade of the 34-kilometre -long segment from the capital Tirana to the main port of Durres and a new 7.4-kilometre rail link from Tirana to the international airport will cost €90mln, with the remainder funded from the local budget. Albania’s 420-kilometre rail network is in a dilapidated state, with pre-1990 diesel-powered engines and wagons.

BULGARIA

Labor Unions Want An 18% Increase In Teacher Wages Bulgarian Labor Unions Want an 18% Increase in Teacher Wages from the Autumn Archive, Minister of Education Krasimir Valchev agree but it should happen from January 1, 2019.

Labor unions insist that this should happen from the October 1st this year. At present, the average gross salary is about one thousand and eighty leva (€550). According to the statistics of 90,000 teachers in Bulgaria, only 3.8 per cent are young.

The average age of educators is 55. In 2017, 3,500 young teachers entered the system. According to the union, the reason for this is low wages.

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10 THINGS

TO STIMULATE BUSINESS IN SUMMER MONTHS

Summer is a good time to do business, plan for new business and get prepared for the fall. June 30th for many companies ends their financial half-year, other companies are in the middle of evaluating what to do in 2018. Either way the summer presents new sales opportunities for your business.

1. Plan your weeks.

2. Get out and visit your clients.

3. Send a note to clients.

4. Create special sales packages when supply is high and demand is low.

5. Prioritize your clients and show some appreciation to them accordingly.

6. Ask for a referral!

7. Keep your eyes and ears open!

8. The summer is a great time to network! Go to meetings.

9. What do you read at the beach?

Summer is a great time to educate yourself.

10. Work and play hard in the summer!

COMPETITORS “The EU is aware that it has strong competitors in the Balkans. There is no vacuum in international relations. If one pulls out or doesn’t want to act, somebody else will,” — SRĐAN DARMANOVIĆ, Montenegrin Foreign Minister

FYR MACEDONIA

MONTENEGRO

Number of Tourist On the Rise

Government Signs €250mln Loan Arrangement With World Bank

The number of tourists staying in Macedonia rose by 17.3% yearon-year in the period January-March, reaching 144,365, the country’s statistical office said.

The number of domestic tourists rose 10.1% year-on-year to 50,860 in the first quarter of 2018, whereas the number of international visitors increased 21.5% to 93,505, the statistical office said in a statement.

The number of overnights spent by tourists in Macedonia in the review period increased 17.7% on the year, reaching 305,263.

Out of the total number of foreign tourists who visited Macedonia in March, 10.7% came from Bulgaria, 10% from Serbia and 9.3% from Greece.

The Montenegrin government has signed a EUR250m loan arrangement with the World Bank in a bid to ensure macroeconomic stability and improve the living standards, the Finance Ministry said in a Friday statement.

The loan will have a repayment period of 12 EMANUEL SALINAS, World Bank country manager forMontenegro and Bosnia-Herzegovina (left), and Minister DARKO RADUNOVIĆ years and a four-year grace period. The loan will have an annual interest rate of six-month EURIBOR + 2.95%. The agreement was signed by Finance Minister Darko Radunovic and World Bank country manager for Montenegro and Bosnia-Herzegovina Emanuel Salinas.

Radunovic said that signing of the loan affirms the credibility of the government’s fiscal consolidation measures. He pledged to continue reforms to meet the criteria for securing another World Bank loan arrangement to further strengthen the state budget. Salinas called on the government to focus on job creation and maintaining a favorable economic environment to achieve inclusive growth.

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CORPORATE ALEKSANDAR MARKOVIĆ, METALAC GROUP CEO

There’s Something In Metalac Polka Dots Gornji Milanovac-based Metalac Group is preparing to celebrate its 60th birthday with fantastic results and ambitious plans. The year of their Jubilee will, they say, only confirm their consistency in being commercially excellent and socially responsible, which should not be doubted

A

corporate culture, which supports the community and the development of people in a personal and professional sense, is one of our greatest values. We care about them, invest in them, and they return that to the company many times over with their dedication – says Metalac Group CEO Aleksandar Marković for CorD.

the latest PC, with an installed software for computer design?

That convinced me that I was in the right place, and Metalac has since grown in every sense.

of managers able to lead the company. The key for us in our selection of people are the Metalac’s 4Ps: Poštenje, Poverenje, Posvećenost i Poštovanje (Fairness, Trust, Commitment and Respect). This is the only thing around which there is no controversy, no dilemma and no deviation.

■ Your appointment is the result of a policy of selecting, educating and training employees, especially supervisors and managers. Will you also stick to the axiom that people are an irreplaceable resource?

- I was nominated as the first among equals from a team of five executive directors, each of whom could have been in my place.

That is the fruit of many years of work of the previous management team, and it is our duty to leave behind a new generation

■ Your salaries are above the national average and always paid on time, while you also pay bonuses and scholarships for your young employees who are regular students... Do you have benefits for all?

- There is no company that is sustainable over the long-term and which doesn’t seriously engage with its employees in one way or another. There are, of course, benefits that apply to all employees, especially when it comes to their children, but management bonuses, additional insurance and similar benefits are only available to those who have earned them. It’s important that employees know nothing is to be taken for granted.

■ You’ve been at Metalac for 25 years. What has changed during that quarter of a century; and what has remained the same?

- I arrived at Metalac during the time of inflation and sanctions, in 1993. As an exportorientated firm, Metalac didn’t have enough work, but the burden of the We established the Metalac crisis was carried equally by all. Salaries Foundation in 2006, because were low and tended to vary, depending in the previous six months only on the time of the day when they were converted into a Deutschmarks, and one baby had been born locally, the management found a way to pay while last year we reached a them twice a week, in order to ease that total of 64. To date, we have problem. utilised around 600,000 euros That was a big school for me, but, as a young engineer, what meant the most to welcome the births of 550 to me were the computers. Can you girls and boys, which is our imagine my happiness when I entered best investment my new office for the first time and saw 36 |

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■ Others discuss a population policy, while you are implementing one. Do all of your workers still receive from the Metalac Foundation 1,000 euros for their first child, 2,000 for a second and 3,000 for a third?

- For a fourth – 4,000, for a fifth – 5,000 ... and so on. Today, when young women abstain from establishing a family due

to their work and careers, we prove that it is not only possible to fuse the two, but also desirable. We also provide support for employees when it comes to schooling for children, while we also own about 40 apartments that are given for lifetime use by couples without children and single parents.

■ Metalac kitchenware is among Europe’s biggest and most successful producers of kitchenware. Are there any homes in Serbia and the region that don’t have at least one of your enamelled saucepans?

- I don’t believe there is, and supporting this claim is also data on market participation in Serbia and some countries of the region. Metalac has been manufacturing kitchenware for almost 60 years and that is still the company’s main business and historical core. We are also unique in that we manufacture and enamel our products under the same roof, and that means both stainless steel and aluminium kitchenware with various inseparable coatings, and in that we also have our own production of decorative stickers, handles and packaging. This enables us to offer our customers superior and authentic design, and good delivery deadlines, all at reasonable prices.

■ You export as much as 70 per cent of the kitchenware you produce to 25 countries worldwide. Do you have special product lines for each of them? Where are the most demanding customers?

- In Western Europe, we mainly work for large chains or renowned wholesalers and appear under their trademarks. This is a good job for a manufacturer, because you don’t have to worry about stockpiling and retail sales. In creating our own lines under the “Metalac” name, we need to understand the specificities of markets and be continuously innovative, which is why we appear every year at the Ambiente fair in Frankfurt to present around 30 different designs that we know to be ahead of their time.

■ According to your development strategy, you envisage revenue increasing by 16 per cent by the end of 2021, earnings growing by five per cent annually and profits reaching €6.6 million... Is that plan achievable?

- No matter how pretentious it might sound, with good work and planning these plans can be realised. Provided, of course, there is no impact from risks that cannot be predicted, such as geopolitical escalations and the like. For the next three or four years, we have planned investment projects worth 10 million euros, because there is no development without investment. We are also entering into the digital transformation process, both

externally and internally, which is vital to our long-term sustainability.

■ You recently opened your new outlet in Belgrade’s Knez Mihailova Street? Will Metalac pots with polka dots become a national souvenir?

- The saucepan with polka dots has become an international souvenir that is sold throughout Europe. As one of our old clients from Germany says, that’s part of European cultural heritage. It is interesting how such a pot awakens emotions in everyone, whether they are from the former Yugoslavia, England, Germany...

There is something in those polka dots.

■ Could you share with our readers the story of the three envelopes that each new director receives from his predecessor?

- Company President Dragoljub Vukadinović introduced this custom on 4th April 2005, when he handed the director’s baton on to his long-time colleague. These envelopes contain instructions on what to do in the case of a problem arising for the company. In the first two are operational instructions on how to overcome a situation, and if Our investments always go in that does not help, the last instruction three directions – replacement reads: “Write three new envelopes”. of equipment, expansion This story shows how no manager is there by the grace of God, but rather of capacity and strategic must achieve results. adjustment, which, according My predecessor didn’t open those to the new development three envelopes, so I inherited them unstrategy, is primary touched on 4th April this year, also from president Vukadinović. I then promised myself that if I had to open them, I would open the third one immediately.

■ You’ve entered your jubilee 60th year of operations. When you celebrate, the whole Milanovac gains. What are you preparing for the birthday?

- Gornji Milanovac gains every day with its Metalac, which has 2,150 employees. We have developed new programmes in the last 10 years and are slowly returning the Factory of Automotive Parts to the path of success, just as we reinvigorated trade enterprise ‘Proleter’. We secured full operational employment for 450 new workers, built a modern football stadium, continued to help six sporting clubs, to encourage birth rates etc. ■ JUNE

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WORLD NEWS

SERVANT “When politics is no longer a mission but a profession, politicians become more self-serving than public servants.” — EMMANUEL JEAN-MICHEL FRÉDÉRIC MACRON, President of France

UK

NETHERLAND

Barclays Boss Fined $871,000

TIP Trailer Leasing Group Sold For €1bn

Barclays boss, Jes Staley, has been fined $871,000 by regulators for breaching rules as he attempted to unmask a whistleblower. The UK’s Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) sharply criticized Staley, saying he failed to “act with due skill, care and diligence” in his response BARCLAYS' CEO JES STALEY to an anonymous letter received in June 2016.

Barclays said it would cut Staley’s 2016 bonus by $678,000. The total fine amounts to about a fifth of his total compensation. The CEO earned over $3 million in 2016 and received a bonus of $1.8 million.

The fine could have been more than $1 million, but Staley was given a 30 percent discount for settling at an early stage. In June 2016, Barclays’ board received anonymous letters raising concerns about the recruitment of Tim Main as head of the bank’s financial institutions group in New York.

Main was a friend and former colleague of Staley when the latter was at JP Morgan.

Staley tried to identify the author of the letters using the bank’s internal security unit. He accused the letter’s writer of harassment and trying to “maliciously smear” Main.

“Mr. Staley breached the standard of care required and expected of a chief executive in a way that risked undermining confidence in Barclays’ whistleblowing procedures,” said Mark Steward, the FCA executive director.

British private equity firm I Squared Capital has acquired trailer leasing group TIP Trailer Services for about €1bn from the Chinese HNA Group. TIP, one of the leading logistics players in Europe, will keep its Amsterdam headquarters, the Financieele Dagblad said. HNA acquired TIP from GE Capital in 2013 but is now selling off assets to trim its debt.

Under HNA TIP’s trailer park expanded from 48,000 units to 66,000, and made several acquisitions including Twant Heetkamp in Limburg.

TIP has operations in 17 countries in Europe and Canada. The company reported operating profit of €49m on turnover of €517m in 2017 and said last year it aims at annual sales growth of 20%.

US

9 THINGS

Twitter Urges Users To Change Passwords Twitter urged its more than 300 million users to change their passwords, saying they had been unintentionally “unmasked” inside the company by a software bug.

The social media site said it found no sign that hackers accessed the exposed data, but advised users to change their passwords to be safe.

“Due to a bug, passwords were written to an internal log before completing the hashing process,” he said. We found this error ourselves, removed the passwords, and are implementing plans to prevent this bug from happening again,” said Parag Agrawal Twitter chief technology officer The San Francisco-based internet company did not specify how many passwords were exposed or how long the glitch made data vulnerable to snooping.

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YOU SHOULD DO BEFORE A VACATION

FRANCE

Investing €1.5bln In Artificial Intelligence France will invest €1.5 billion into artificial intelligence (AI) research and development up to 2022, the Élysée Palace presidency announced last month.

Macron has said he does not want France to “miss the AI train” as he introduces measures designed to compete with the United States and China, the current global leaders in AI technology. The new proposals are aimed, in part, at luring more top researchers to the country. Tech giants including Samsung, Google and Fujitsu have already announced plans to set up new AI centres in France.

Microsoft, which has pledged to invest $30 million in France, opened France’s first AI school in Paris earlier last month to train students for the jobs of the future with a free seven-month course.

The school plans to train 400,000 students over the next three years.

The French government is focusing on a multi-pronged strategy to boost its AI industry focusing on four sectors: defence, health, transport and environment.

A vacation should be a relaxing reprieve from your chaotic work life. However, if you don't adequately prepare for it, you could return feeling even more stressed than you did when you left.

Here are eight things you should do to prepare for your vacation: 1. Be strategic with your schedule.

2. Create a customized autoreply email message and outgoing voicemail.

3. Contact high priority clients or customers a week or two before you leave.

4. Start prioritizing your workload early, recognizing you'll lever get everything done.

5. Look ahead at your calendar.

6. Decide upon and communicate your "rules of engagement" while you're away.

7. Make a checklist 8. Let colleagues know well in advance of your vacation plans.

9. Empower and trust people on your team.

DILEMMA

JAPAN

“If you have the new customs partnership, you have a crazy system whereby you end up collecting the tariffs on behalf of the EU at the UK frontier. If the EU decides to impose punitive tariffs on something the UK wants to bring in cheaply, there’s nothing you can do.”— BORIS JOHNSON, UK Foreign Secretary RUSSIA

Toyota Announces Record Net Profit

Russian Gas Sales To EU Hit Record High

To y o t a M o t o r Corp. announced last month that it booked a record net profit for the last business year, despite uncertainty caused by once-ina-century changes faced by the automobile industry and PRESIDENT AKIO TOYODA rising protectionism.

Toyota said its net profit reached ¥2.49 trillion (€95bln) for the business year that ended in March, surging 36.2 per cent from a year earlier thanks mostly to the weaker yen and cost cutting.

Annual sales jumped 6.5 per cent from the previous year and operating profit rose 20.3 per cent.

Profit jumped in all regions except North America, where profits were more than halved by the cost of customer incentives in the local market.

Globally, the Aichi-based automaker sold a total of 10.44 million units during the period, while it expects to sell 10.5 million units for the following year.

In the first quarter of this year, Gazprom’s gas deliveries to Europe reportedly increased by 6.6 per cent against the same quarter a year ago.

The deliveries to European countries kept on growing last month, even after the winter heating season ended. Sales of Russian gas to Europe reached 70 billion cubic metres from January to April.

According to rough estimates, the company may sell a record volume of natural gas throughout the entire history of gas exports, including the Soviet period.

The Russian gas monopoly continues hurdling antitrust barriers to build the Nord Stream 2 pipeline that is aimed at doubling the existing capacity of the Nord Stream pipeline from Russia to Germany. Gazprom also completed the deep-water section of the first thread of the Turkish Stream gas pipeline.

The company last month said it was ready to build the Nord Stream 3 pipeline, if necessary.

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CORPORATE PROFESSOR JASNA BALOH, DIRECTOR AND FOUNDER OF THE DOBA BUSINESS SCHOOL, MARIBOR

Education For The 21 Century st

In the 10 years that the representative office has been open in Serbia, studies at the DOBA Business School have been completed by 410 students, 64 per cent of whom advanced following graduation, and most of whom have rich experience and major ambitions this represents a connection with their birth country and language.

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tudents pursuing online learning in the Serbian language have three Bachelor programmes and three Master programmes available in the fields of business, international business, marketing, and sales and tourism, and they see the highest value in the faculty’s flexibility, the availability of professors and tutors, as well as the ability to acquire special competences and soft skills.

■ Ten years have elapsed since the first generation of students enrolled in Serbia. Have your expectations been fulfilled?

- Serbia was the first stop for the DOBA Business School ten years ago when it began expanding its exclusive internationally accredited online programmes to foreign markets, while today those studies include more than 1,200 students from 46 countries around the world.

Our expectations have certainly been fulfilled.

Our work during 10 years in Serbia has been marked by the success and satisfaction of students, connecting with the economy, expanding knowledge in companies, practical graduate and master dissertations and excellent online tutors. Otherwise, as many as half of our students who opt to study in Serbian live and work outside of Serbia, and for them 40 |

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■ Your model for fully online learning is internationally accredited. How do students communicate with professors; how do they prepare for and take exams; is there any consultation...?

- Our model of online learning is one of our biggest and most successful research and development projects. We are the only educator in Serbia to conduct 100%

All of our professors are Slovenes who speak Serbian, while our online tutors are Serbs who complete a threemonth course – with only the best being able to become part of the DOBA Business School team. We also have programme managers who follow students, as well as excellent technical support online studies and we are the only faculty in Southeast Europe with internationally accredited online studies that can be compared to those of the world’s best universities.

Our competition doesn’t succeed in outdoing us, because high-quality online studies are organisationally demanding – good personnel is required, i.e. professors who are almost constantly accessible, and who are practical and come from the

economy. Tutors are also required, as specialists in a particular field who are available to students seven days a week.

Students are online practically every day, for many hours, and that is their way of life. As such, viewed from their perspective, flexibility is the greatest advantage of this type of study. But flexibility requires discipline, good organisation, active weekly work and the timely submission of course work.

■ Alongside professional knowhow, increasing value is being attached to the special competences and “soft skills” that are key to advancement. Do you develop them among your students?

- We last year conducted research among employers in Slovenia, Serbia, Croatia, Bosnia-Herzegovina, Macedonia and Turkey on the soft skills that they will need by 2020. Proving to be the most important to them were: problem solving skills, customer focus abilities, risk management and crisis communication, while creative and critical thinking, as well as the use of digital/social media, are also highly valued.

These skills are actually at the essence of all of our programmes, because online studies develop teamwork, digital communications, networking and the organisation of time better than classical studies. ■ For all those seeking additional information, everything is available via our Serbian website: www.doba.rs.

FEATURE NEW SURVEY OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE

Conditions For Doing Business In Serbia

The results of a survey conducted by the German-Serbian Chamber of Commerce in Serbia during February show that ratings of the economic situation in Serbia for 2018 have improved compared to previous years

H

alf of respondents rated expressed his satisfaction with the the economic situation good results of this year’s survey. as satisfactory, while 12% “The reactions of companies are even rated it as good. positive again. The improvement However, 38% of respondents of the overall economic situation in saw no improvement and believe Serbia over the past years certainly that the economic situation could contributes to this,” said Ambassador Dittmann, adding that this “is worsen in Serbia compared to 2017. the result of important reforms of It is important to emphasise the Government of Serbia, dedicathat companies rate their own tion to which should continue in operations as being better than MARTIN KNAPP (left), Dr RONALD SEELIGER and H.E. AXEL DITTMANN the future.” the general business climate. More Summing up the results of the than half of respondents rated their as well as the quality and availability of local survey, AHK president Dr Ronald Seeliger own operations as good, 40% satisfactory, suppliers. Recognition of this factor is linked concluded that this year’s survey among and only 8% said that their business results to the successful supply chain initiatives German investors in Serbia shows the trend were insufficient. Business forecasts for the implemented by the AHK. of further growth in satisfaction among current year also contained more optimistic Within the framework of the survey, companies assessing business conditions views than during the period two years ago, which was conducted by the Germanin Serbia. “This year, after a full decade, so 56% of respondents expect improvement, Serbian Chamber in 16 countries of Central for the first time we have come signifi37% expect an unchanged business situaand Eastern Europe, participants also tion, while 6% fear its deterioration. cantly closer to the assessment of business evaluated other countries. Thus, in the When it comes to the development of conditions prior to the onset of the global category of desirable economic locations, business and additional employment in economic crisis and its disastrous effects 2018, 37% of companies don’t plan to on all economies, which is an important increase their number of employees, shift. On the other hand, for the past In order to help the state 56% consider that there will be new three years our members have identified the same factors as negative. That is employment, while only 6% announced deal with negative factors, why – in order to help the state a possible reduction in their number of we will freely propose that the precisely deal with these negative factors as soon employees. During 2018, more than half Government of Serbia as possible and to maximum effect – we of surveyed companies said that they will freely propose that the Government plan to increase investments, while 8% establishes an advisory body of Serbia establishes an advisory body of announced a decrease in investments. of German investors German investors. The Chamber will offer When it came to assessments of its knowhow and experience, and the the factors impacting on business Serbia ranks 11th among 19 countries, as idea is that, in direct contact between our operations in Serbia, the worst were aswas the case in previous years. Companies sessed as being: the fight against corrupexperts and representatives of the Governthat already operate in Serbia have a bettion and crime, legal security, transparency ment, in a quick and non-bureaucratic way, ter opinion of Serbia than companies that in public tenders, the tax system and tax we will contribute to solving the problems have never operated in our country. administration, as well as the efficiency of that make it more difficult for businesses to And although Serbia was commonly aspublic administration. work in Serbia.” sessed as still being a very desirable destinaGerman-Serbian companies gave The AHK Serbia conducted its survey tion for investment, competition in Eastern satisfactory ratings to criteria related to on the economic environment in Serbia and Central Europe is very strong, ensuring the labour market in Serbia: companies are among its member companies for the 13th that Serbia must work hard and actively to satisfied with the level of productivity and time. There are nearly four hundred German improve overall business conditions. motivation of employees, their qualificacompanies currently operating in Serbia and German Ambassador H.E Axel Dittmann tions, academic education and labour costs, employing more than 45,000 workers. ■ JUNE

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CORPORATE ANTONELLO FACCHINI, CREATIVE DIRECTOR OF BRAND “BARBOLINI”

Belgrade’s Men Appreciate Italian Fashion Antonello Facchini, creative director of Barbolini, often comes to Belgrade on business, but also because he likes the pace of development of our capital, its good restaurants with delicious food and beautiful women. Barbolini also plans to open new shops here, because men in Serbia show an increasing interest in fashion

T

op fabrics, cuts, processing and creativity are timeless symbols of fashion and the need of modern men who are interested in aesthetics, quality and details. All Barbolini brand items bear the label “Made in Italy”, which distinguishes it significantly from the competition ■ Are you visiting Belgrade for the first time?

- No, no! I often come to Belgrade, whenever I find the time. Apart from business reasons, I also come because I think Belgrade is a very beautiful and exciting city. Incredible changes are taking place here, so every time I’m pleasantly surprised to see how your capital is developing and how many new projects are being implemented or planned. Moreover, people also eat great here and there are excellent restaurants, so I always try to fuse business and pleasure.

■ Tell us something about your brand.

- Barbolini is a male brand. It was created through the transferring of the tailoring tradition from father to son, only for the factory production of trousers in the 1970s, via the

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complete production of garments in the 1980s, to lead to the emergence of the brand “Barbolini” as a total male look, with production expanded to also encompass shoes, shirts, sweaters, ties etc. What is very important is that all articles are produced entirely in Italy. So, everything is Made in Italy, which distinguishes us significantly from the competition.

■ You are the creative director of Barbolini. From where do you draw inspiration?

Belgrade’s men appreciate and follow Italian fashion; they are able to recognise top-quality materials, cuts and processing. Likewise, I think the relationship between quality and price is very good at Barbolini, which is very important today

- Commercial director Maurizio Grimaldi and myself are from Apulia, a region of sun and sea in the very south of Italy. The colours and scents of Apulia, as well as its long tailoring tradition, are my main sources of inspiration.

■ In Belgrade you have outlets in the Ušće, Delta City and Rajićeva shopping centres. Do you plan to open any others?

- I must first note that we found an extraordinary partner in PROMODA, which is a company that deals with the import and retail of Italian garments in Serbia and the region. We share exactly the same values and vision for the development of the Barbolini brand.

What is certain is that a Barbolini store will open this autumn in Novi Sad, in the “Promenade” centre.

Moreover, we are also impatiently awaiting the opening of the grandiose new “Belgrade Waterfront” retail centre, because we will certainly be present there too. We are also considering a larger shop format.

■ Why only men’s fashion? What about women?

- Uh, now you’ve found me out with a question... It is only by walking along Knez Mihailova Street that you can you see how beautiful and well-dressed Serbian women are. Indeed, when I see such beautiful women, I want to design a collection for them. I am truthfully considering a women’s collection, but for now that’s just a vision. ■