The Serbian government stated Thursday that the conditions needed for the pharmaceutical company Galenika to resume production had been fulfilled and that Serbia would not face a shortage of pharmaceuticals.

The government will provide guarantees for a EUR 70 million loan for Galenika, Minister of Economy Nebojsa Ciric said after a meeting of the government.

He stated that Galenika Director Nenad Ognjenovic would be replaced along with most of the company management. The government also ordered an investigation into the company's operation, he added.

The production at the company has been at a standstill for over a month. Galenika's debt is at around EUR 120 million.

The government also adopted two ratification bills on defence cooperation, one with Cyprus and another with Kuwait.