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The Government of the Republic of Serbia

In the service of citizens

Implementation of automated insolvency system begins

Belgrade, 31 March 2010

State Secretary of Economy and Regional Development Nebojsa Ciric stated that the implementation of the automated insolvency system in companies, associations, cooperatives and sports organisations, whose accounts have been frozen for more than three years, will begin today.

Ciric told a press conference that the National Bank of Serbia (NBS) will make public a list of around 10,000 such companies.

He said that the new Law on bankruptcy envisages that the NBS submits this data to commercial courts as well, which are then under obligation to start a court procedure.

The State Secretary explained that automated insolvency and the erasing of a company or an association’s name from the registry can be avoided if a down payment for initiating a bankruptcy procedure is paid within 60 days and a reorganisation plan is submitted, or if the account is unfrozen for at least one day.

The automated insolvency system will not be applied to companies undergoing restructuring or to entrepreneurs, Ciric specified, announcing that as of tomorrow the NBS will publicise a list of companies with accounts frozen for more than three years on a monthly basis.

Deputy Prime Minister Mladjan Dinkic’s advisor Luka Andric said that costs of a bankruptcy procedure stand at between RSD 200,000 and RSD 300,000, adding that they should now be lower.

Andric said that assets of companies which undergo automated insolvency will become state property, however the state will have no obligations towards creditors.