Sale of Capital
Enactment of the
Deposit Insurance Agency Law
, applicable since 1 April 2015, brought about important changes to the DIA’s mandate. Some of the DIA’s previous responsibilities, such as the management of banks owned by the Republic of Serbia, the sale of shares in such banks, and the sale of the state-owned shares in insurance companies, were assumed by the Ministry of Finance.
However, before these responsibilities are fully transferred to the Ministry of Finance, as per Art. 27 of the Deposit Insurance Agency Law, the DIA continues to:
- conduct the procedure of sale of shares where the Republic of Serbia is a shareholder, initiated before 12 February 2015, in compliance with the law and instructions of the Ministry of Finance, for a fee of 0.1% of the achieved sales price, set forth by the Government’s resolution;
- conduct the procedure of sale of social capital in insurance companies, in compliance with the law governing the insurance.
In May 2017, the
Decree on the Manner and Procedure of Sale of Shares in Banks Owned by the Republic of Serbia
adopted, whereby the
Decree on the Manner and Procedure of Sale of Shares in Banks Owned by the Republic of Serbia or Banks in Bankruptcy or Liquidation Administered by the Deposit Insurance Agency
was repealed. In accordance with the 2017 Decree, the Ministry of Finance assumed responsibility for the organisation and implementation of the sale of state-owned shares in banks.
The operations and privatization of insurance companies are regulated by the Insurance Law and the Decree on the Procedure for Sale of Capital of Insurance Company by Public Tender, which also defines the implementing agencies and schedule in the bidding procedure.
Pursuant to the Insurance Law, the Ministry of Finance initiates the privatization of the insurance companies with socially-or state-owned capital and supervises the procedure, whereas the DIA arranges and implements the privatization of socially-owned capital in insurance companies.
In addition, according to the Insurance Law, the privatization of insurance companies, unless otherwise regulated by the same law, is governed by the law which regulates the privatization of socially- and state-owned capital in companies and other legal entities.