On December 8, 2018 National Assembly of the Republic of Serbia enacted a Law on changes of Law on restitution and compensation which shall come into effect on December 16, 2018. The most significant effect of the adopted changes refers to extension of time frames for finalization of the restitution procedures for additional three years. Main reason for introducing such changes is protection of the macroeconomic stability and economic growth of the Republic of Serbia, since it must not be jeopardized by the amount of compensation to be disbursed.
Amongst other, Government of Republic of Serbia is now given more time to determine the coefficient for compensation – it’s eight years instead of five years as of the date of publishing the public invitation. Public invitation was published on February 6, 2012, and also, more time to determine basic elements of bonds, amounts of emissions, conditions for their distribution and disbursement – now it’s June 30, 2020 instead of June 30, 2017.
In addition, June 30, 2020 is now determined as the starting date for calculation of interest for compensation instead of December 15, 2017; disbursement of bonds was intended to begin already in the end of this year, starting with December 15, but new regulations postponed disbursement of bonds for December 15, 2021. Adopted changes of the Law also foresee that if within eight years as of the date of publishing the public invitation, not all decisions on compensation are enacted, the Agency shall estimate undetermined base for compensation in order to enable the determination of the coefficient timely. Advance payment of compensation is now set out to be estimated and disbursed starting from March 31, 2020 instead of March 31, 2017. Restitution Agency is also given longer time to deliver to the Government estimation of compensation base for all submitted requests – eight years as of the date of publishing the public invitation.
If you have any questions regarding the above, please contact Ksenija Golubović Filipović, Partner (ksenija.golubovic@zslaw.rs), or any of your regular contacts at Živković Samardžić.