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The Government of the Republic of Serbia

In the service of citizens

USAID sets aside $9.5 mln to reform bankruptcy and enforcement procedures

Belgrade, 14 September 2006

Serbian Minister of Justice Zoran Stojkovic said today that the US Agency for International Development (USAID) will finance the reform project Bankruptcy and Enforcement Strengthening (BES) in Serbia with $9.5 million.

From left: Michael Polt, Predrag Bubalo and Zoran Stojkovic

Stojkovic said at a press conference that in next four years and a half this project should improve investment conditions in Serbia and help the Serbian economy become competitive and ready to compete with economies of other countries after the completion of the transition process.

He recalled that USAID has been giving assistance to Serbia in the implementation of legislation and the rule of law so far, which is the basic framework in which stable economic growth and greater investments can be expected.

Stojkovic pointed out that the previous USAID project of assistance to Serbia for the reform of commercial courts has already given significant results since the efficiency of these courts in Serbia has increased by more than 40%, and the average time needed for resolving a case has been reduced from 1028 to 600 days.

According to Stojkovic, the project of reform of bankruptcy and enforcement procedure will secure a consistent implementation of laws and strengthening of institutions that deal with bankruptcy and enforcement procedures - the Agency for licensing trustees in bankruptcy and the Centre for implementation of bankruptcy procedures.

US Ambassador in Belgrade Michael Polt said that this project is of crucial importance for ending transition and the formation of a free market.

Milan Parivodic

Polt said that most of the viable businesses in Serbia have found a buyer, but there are companies which are unattractive to buyers. He added that these companies will have a better chance for a new beginning if the bankruptcy procedure starts and finishes as soon as possible, and that is possible only if institutions are strengthened and the procedure is improved and accelerated.

Serbian Minister of Economy Predrag Bubalo said that the Bankruptcy Centre of the Serbian Privatisation Agency is conducting 337 bankruptcy procedures, of which 270 are active. He added that some 800 to 1000 companies in Serbia with socially-owned and state capital have not been privatised, and it is not known how many of them will be declared bankrupt.

Serbian Minister of International Economic Relations Milan Parivodic said that this Ministry will offer all necessary expertise and other help for implementing the BES reform project in Serbia.