Debate on the set of financial laws launched

The deputies of the Serbian Assembly have begun a unified debate on the set of financial laws on the agenda of the eleventh session of the first regular sitting of the Serbian National Assembly in 2004, which started today.

Explaining the Bill on the National Housing Loans Corporation, the Finance Minister Mr. Mladjan Dinkic said that the establishing of that institution would create conditions for the banks to grant long-term loans to citizens under favourable conditions for construction of purchase of the housing objects. He stated that the National Corporation would overtake 75 to 85% of the risk from the commercial banks, i.e. that the state will cover the largest part of the costs if a citizen is not able to pay back the loan he was granted. The Serbian Government will be the owner of the National Corporation. €10 million will be provided for the initial capital from the budget.

The Bill on insurance increases the current counts for the foundation of an insurance company by 123%. This increase, explained Dinkic, should be a guarantee that damages will be paid to the insurance bearer in time. For the insurance operations against accidents and voluntary health insurance the census will be €1 million, for life insurance and other property insurance €2 million, for insurance of motor vehicles – full coverage and rolling stock and mandatory insurance against responsibility in the traffic €2.5 million, for voluntary pension insurance €3 million, and for re-insurance operations €4.5 million.

The novelty regarding the existing regulations is the introduction of the possibility to invest insurance assets abroad, amounting to 20% of the initial capital of an insurance company, with the previous agreement of the supervising body. Supervision of the insurance operations will be performed by the National Bank of Serbia (NBS), and that is the only change in the Bill on the amendments to the law on the NBS.

Presenting the amendments to the Law on public procurements he said that local bidders would have 20 % of the price (points) advantage over foreign bidders. Apart from that, this bill decreases the costs and simplifies the tender procedure for public procurements, and urgent procurements can be carried out immediately, without previous opinion of the Public Procurement Administration. Also, it proposes the improvement of the status of the members of the Commission for the protection of the bidders’ rights appointed by the Serbian Government for the four years period.