Collection of Claims
Recovery of Claims by the Banks in Bankruptcy

Pursuant to the Law on Privatization, all state creditors, including the banks in bankruptcy under the Agency’s administration, are bound to register their claims against legal entities undergoing restructuring or privatization by public tender or auction as at December 31, 2004. State creditors are bound to write off the debts of the said legal entities undergoing privatization whereas all such claims are settled from privatization proceeds, by implementing the Contract on Settlement of Claims. [

The largest portion of receivables is connected with the recovery of claims in the bank bankruptcy proceedings conducted in accordance with the Law on Rehabilitation, Bankruptcy and Liquidation of Banks and foremost with the bankruptcy of the so-called four large banks (Beogradska Banka a.d. Beograd in bankruptcy, Jugobanka a.d. Beograd in bankruptcy, Beobanka a.d. Beograd in bankruptcy and Investbanka a.d. Beograd in bankruptcy).