1. Serbia IAIR General Meeting and Conference, Bangkok 2007 1 REPORT OF BANKRUPTCY SUPERVISION AGENCY (BSA) Trends and developments Prepared by Vesna Gaćeša Acting Director, Bankruptcy Supervision Agency

2. Serbia IAIR General Meeting and Conference, Bangkok 2007 2

3. Serbia IAIR General Meeting and Conference, Bangkok 2007 3 Facts about Serbia Serbia is located in the central part of the Balkan Peninsula, on the most important route linking Europe and Asia, occupying an area of 88, 361 sq. km. The length of Serbia's border is 2114.2 km Population, excluding Kosovo and Metohia Province, is 7,498,001 (according to official census data collected in 2002) Belgrade is the capital and the administrative, economic and cultural centre of Serbia. Official language Serbian Currency Serbian Dinar (RSD) National air carrier Jat Airways

4. Serbia IAIR General Meeting and Conference, Bangkok 2007 4 Introduction, developments, trends BSA is a young (since 24.02.2005) and unique agency in the South Eastern Europe In accordance with the BSA Law and other by-laws, the BSA has the following responsibilities: 1)To issue, renew, and revoke licenses for pursuing the bankruptcy administrator’s profession, in accordance with the law; 2)To organize and conduct licensing exam for bankruptcy administrators; 3)To keep the Registry of licensed bankruptcy administrators; 4)To maintain supervision of activities of bankruptcy administrators and monitor the development of the bankruptcy administrator’s profession; 5)To monitor the implementation of provisions regulating the bankruptcy proceedings; 6)To collect and process the statistical and other data of relevance to the conduct of bankruptcy proceedings;

5. Serbia IAIR General Meeting and Conference, Bangkok 2007 5 Introduction, developments, trends – BSA activities 7)To propose national standards for administration of the bankruptcy estate, together with the Code of Ethics, both of which were adopted in accordance with the provisions of the Bankruptcy Law; 8)To perform other tasks stipulated by the law and the Statute. The Agency carries out the activities under 1), 2) i 4) as entrusted tasks. A lot of progress was made in relation to the implementation of envisaged activities, with emphasis on organizing and conducting the licensing examination and issuing license for the performance of duties of a bankruptcy administrator in accordance with the Law

6. Serbia IAIR General Meeting and Conference, Bangkok 2007 6 Bankruptcy Supervision Agency In addition to the law, the regulatory framework for the successful performance of the BSA include: –Regulation On The Conditions, Curriculum, And Manner of Taking The Bankruptcy Administrator Licensing Examination (Exam Regulation) –National Standards for Administering the Bankruptcy Estate –Code of Ethics for Bankruptcy Administrators –Regulation on Bases and Criteria For Determining The Final Amount of Award For The Work of Bankruptcy Administrators and Compensation of Actual Expenses (Reward and Compensation Regulation) –Tariff for services provided by the BSA (BSA Tariff)

7. Serbia IAIR General Meeting and Conference, Bangkok 2007 7 BSA Activities from its foundation until July 2007 Publishing: –Book of Regulations for Bankruptcy Administrators –Handbook for Bankruptcy Administrators –Expert magazine “Stečajni informator” (Bankruptcy Newsletter) –Conference Book of the Third ACC INSOL Europe Conference Promotion and development of the bankruptcy administrator’s profession –Participation in local and in international seminars, conferences (follow up on local and international achievements and exchange of experiences in insolvency field) –Provision of support to bankruptcy administrators

8. Serbia IAIR General Meeting and Conference, Bangkok 2007 8 BSA activities from its foundation until July 2007 (cont.) Support to international projects –USAID/BES Project – BSA IT system improvement –GTZ Programme- Technical Support to the Privatization Agency - Professional Improvement of Licensed BAs Other activities –Orderly updating the information on its website and making all forms available for download from the website –Improving relations with the public and the service users –Keeping personal files of BAs –Enabling access of BAs to all exam-related information –Activities were started on improving electronic interchange of data with services users in the area of supervision

9. Serbia IAIR General Meeting and Conference, Bangkok 2007 9 Activities from July 2007 onwards Change of the BSA Director New organization of work within the BSA (teamwork, new departments) Future activities will focus on developing the regulatory and organizational frameworks to improve following : –Supervision of activities of BAs and monitoring the development of bankruptcy administrator’s profession –Issuing and revoking licenses for the performance of duties of BA

10. Serbia IAIR General Meeting and Conference, Bangkok 2007 10 Activities from July 2007 onwards (cont.) Promotion and improvement of bankruptcy administrator’s profession –From 2007onwards, the BSA will organize seminars by itself and continue to actively participate in international events, conferences (to stay informed of local and international achievements and keep exchanging experiences in the field of insolvency) –Continue to provide support to bankruptcy administrators in relation to their professional education and training, especially through organizing round table meetings and workshops, in cooperation with local and international partners, on topics related to practical implementation of existing laws and regulations

11. Serbia IAIR General Meeting and Conference, Bangkok 2007 11 Activities from July 2007 onwards (cont.) Intensify activities on following up on regulations governing the bankruptcy proceedings; active participation in preparing proposals for amendments to the Law and by-laws, with a view to removing obstacles which proved to be non- functional in practice Better organize the procedure of collecting and processing of statistical data, and improve the software programme in order to follow up on all activities from the BSA scope Enhance communication with service users The Internet; delivery of reports through electronic interchange

12. Serbia IAIR General Meeting and Conference, Bangkok 2007 12 Activities from July 2007 onwards (cont.) Continue with and improve the publishing activity by publishing electronic editions of professional literature Contribute by active participation to the implementation of international projects: - USAID/BES Project – BSA IT system improvement - GTZ Programme “Technical Support to the PA” Professional Improvement of Licensed BA

13. Serbia IAIR General Meeting and Conference, Bangkok 2007 13 REPORT ON LICENSING EXAMINATION AND LICENSES ISSUED TO DATE

14. Serbia IAIR General Meeting and Conference, Bangkok 2007 14 Licensing Examination Legal Framework Regulation on the Conditions, Curriculum, and Manner of Taking the Bankruptcy Administrator Licensing Examination, passed by the Minister of Economy Method of taking the examination Written part Oral part Education for candidates Pre-training courses (organized by the BSA and other institutions)

15. Serbia IAIR General Meeting and Conference, Bangkok 2007 15 BSA organized and held three exams: July ( 15.07.2005) October (29.10.2005) December (17.12.2005) 863 exam-takers, 307 (35.5%) “passed” Exams in 2005

16. Serbia IAIR General Meeting and Conference, Bangkok 2007 16 Exams in 2006 BSA organized and held two exams April ( 08.04.2006 ) June ( 24.06.2006 ) 176 exam-takers, 105 (59.6%) “passed”

17. Serbia IAIR General Meeting and Conference, Bangkok 2007 17 Exams in the first half of 2007 BSA organized and held one exam March (24.03.2007) Next exam (early November 2007) 118 exam-takers, 48 (40.7%) “passed” the exam

18. Serbia IAIR General Meeting and Conference, Bangkok 2007 18 Licenses Requirements for license issuance Successfully passed professional exam for bankruptcy administrators A fee must be paid for granting the license Issued licenses First licenses issued 21.09.2005 In 2005: 185 licenses were issued In 2006: 153 licenses were issued In the first half of 2007: 26 licenses were issued

19. Serbia IAIR General Meeting and Conference, Bangkok 2007 19 Overview of cumulative results and the candidate structure by residence, gender and occupation As at 01.08.2007 : there were a total of 460 candidates who passed the exam

20. Serbia IAIR General Meeting and Conference, Bangkok 2007 20 Overview of cumulative results and the candidate structure by age, gender and occupation (cont.) 362 licenses were issued upon the request of BAs:

21. Serbia IAIR General Meeting and Conference, Bangkok 2007 21 Engagement of Bankruptcy Administrators in cases Conditions for appointment 1)Possession of a license 2)Status of an entrepreneur 3)3 years of working experience Bankruptcy administrators are appointed by bankruptcy panel Who can be a bankruptcy administrator in Serbia? Individuals Specialized institutions

22. Serbia IAIR General Meeting and Conference, Bangkok 2007 22 Engagement of Bankruptcy Administrators in cases (cont.) 1118 cases with the BSA 809 active cases 309 filed cases

23. Serbia IAIR General Meeting and Conference, Bangkok 2007 23 Engagement of Bankruptcy Administrators in cases (cont.) 457 (56%) individuals acting as BAs 352 (44%) licensed BAs - agents of the specialized institution PABU

24. Serbia IAIR General Meeting and Conference, Bangkok 2007 24 Engagement of Bankruptcy Administrators in cases (cont.) Out of a total of 362 licensed bankruptcy administrators, 238 are engaged in cases Individuals (165) Agents of the PABU (163)

25. Serbia IAIR General Meeting and Conference, Bangkok 2007 25 Registry of Bankruptcy Administrators The BSA is responsible : to keep the registry of bankruptcy administrators to keep the database of BAs updated to deliver the list of BAs to all commercial courts in the territory of the Republic of Serbia.

26. Serbia IAIR General Meeting and Conference, Bangkok 2007 26 Thank you ! Bankruptcy Supervision Agency Tel +381 11 2628-590 Fax +381 11 2632-235 11000 Belgrade, 14 Kneza Mihaila St. Republic of Serbia Visit the official Internet presentation of the BSA at: www.alsu.sr.gov.yu