The State is settling all obligations on the basis of the citizens „old foreign currency savings“

The Government of the Republic of Serbia reached a decision regarding the issuing of government bonds for the regulation of the debt towards the citizens ?old foreign currency savings?, of the total amount of 4.2 billion Euros. According to the dispositions of this decision, the nominal value of the bond is one Euro, and the issue date is August 19th. All bonds are issued in fifteen series, going from A 2002 to A 2016, and their cash payment term will be on each may 31st starting from this year, by the year 2016.

Funds for the obligations payment with the year 2002 term will be provided by FRY 20.38 precent, The Republic of Serbia 49.06 percent, the National Bank of Yugoslavia 15.28 precent and other competent financial institutions and banks 15.28 percent, while the rest of this public debt will be reimbursed to the citizens exclusively from the serbian budgetary funds, starting from the next year, up to the year 2016.

All the bonds are issued in a non-material way, in the form of an electronic record, addressed namely, and their trade is exepted from the excise and sales taxes, as well as of taxes on capital profit, taxes on finacial transactions and all other taxes.

The Serbian Government bonds can be used to buy actions and obligations issued for the corporations under privatization, as well as for the buying of actions of authorized banks for the appartments buying up contracts, as well as for the buying up of building estate, business premises, mortgage and other forms of real estate representing Government property.

The initial bond holder can use the bond before it’s payment term, in amounts and under conditions provided by the legal regulations of the serbian Government, for the purpose of medical treatment, medicine supply, funeral procedures and other costs. The bonds can be used after the payment term date for the purpose of excise and sales tax payment, as well as for the payment of taxes on private property, citizens revenue taxes, and corporate profit taxes.

Starting from september 2nd 2002. at all the National Svings Bank windows certificates on the conversion of the savings to the government bonds can be obtained. The coversion date is August 19th according to the dispositions of the Law, meaning that the converted amount figuring on the bond is the savinigs amount according to the exchange rate dated 19th August 2002 so that all the concerned clients will obtain their conversion certificates on the basis of equity, regardless the day they will claim their certificate, was mentionned in the statement issued by the National Saving Bank.

The National Bank of Yugoslavia epowered the National Savings Bank for the delivery of certificates on conversion of the savings to the government bonds concerning the 10 banks having lost the work permit. The Bank has thorougly prepared all the necessary procedures, so that the whole operation could be adequately realized (some 2.000.000 clients are concerned by this operation).

During the last week, the trading of bonds on the old foreign curency savings on the Belgrade stock market was in a slight decline, but a stabilization of the bonds trade is expected in current of this week, simultaneously with the certificates delivery process.

All foreign currency savings account holders do not needto hurry to obtain their certificates on the bonds, to avoid the possible crowds in the bank offices.

Those clients willing to trade with their bonds, should be patient and wait for the valuable papers market stabilization. The certificates delivery will be carried out on 300 bank windows of the National Savings Bank, in 38 different cities all over Serbia.

The minister of finance and economy of the Republic of Serbia, Mr. Bozidar Djelic, emphasized that all the old foreign currency savings debts will be reimbursed along with the interest, while the savings accountts holders from Dafina’s and Jezdimir Vasiljevic’s banks, can only expect to obtain the principal fuds, possibly reduced according to previous payments.
– The funds allocated for the debts reimbursment for some 2 million account holders and 3.5 million savings accounts, will be provided from the national budget of the Republic of Serbia, said Djelic.
– Allocated funds correspond approximately to 1 to 1.5 percent of the national gross Product. The issuing of government bonds for the debt reimbursment of the loan for the economical rebirth of Serbia, of a total amount of fifty million Euros, will assure the reimbursment by the end of the year of some two thirds of citizens claiming the payment.

The clients of Dafina’s bank, can expect the start of their debt reimbursment starting from septeber 10th. The precize date of the start of those proceedings will be officially announced by the Serbian Government and Tne National Bank commission.

Mr. Bojan Stanivukovic, the director of the National Savings Bank, announced last friday, that the clients of Dafina’s bank reimbursment will start on septeber 10th , while the clients of „Jugoskandik“ bank, should wait the month of november, as it was previously declared.

– The National Savings Bank will, starting from next friday, begin to inform the Dafiment bank clients on the exact date to come and collect their first installment of the amount of 276 Euros. The Bank will inform them personally and in writng, on the exact date, time and place of the payment, in order to avoid unnecessary crowds. The National Savings Bank will carry out the payments through all 300 previously mentioned bank windows.

Thus, Dafiment bank account holders won’t have to come to Belgrade to collect their money, but just to do so in any of their city National Savings Bank branch office. All those who still did not claim the reimbursment of the debt from savings in Jugoskandik or Dafiment banks, are ivited to do so, in writing, submitting all necessary documentation (copies of contracts and certificates of payment) to the following address: Diplomatska kolonija 22. It is mandatory to provide the competent bodies with the copy of the personal ID and inform of a contact phone number, enabling the sepicial services of the National Bank of Yugoslavia to complete all possibly missing data and files.

It is also expected during the current of the coming month, to see the National Savings Bank, in cooperation with several building corporations, to offer to the reimbursed client to buy up appartments in exchange to the reimbursment government bonds for the old foreign currency savings. For this special kind of transaction, the price of the government bond will be lower than it’s nominal value, but superior to the market value obtainable on the stock market. The National Savings Bank also established criteria for the use of government bonds for credit deposit for appartments buying up on credit.