director - Ministarstvo finansija
director - Ministarstvo finansija
director - Ministarstvo finansija
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Enforcement of claims<br />
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006<br />
Enforcement of claims<br />
secured by the Contract on<br />
Fiduciary Transfer of Immovable<br />
Property Ownership Right<br />
Development of the monetary transactions,<br />
credits, banking and other<br />
forms of debtor-creditor relations<br />
brought about debt security problem. Creditors<br />
have more confidence in the right of<br />
pledge, as a mean of security, because the<br />
credit is then really secured.<br />
Pledge, as a mean of security, has a history<br />
in the Roman Law as trust and mortgage<br />
as well as in the Customary Law in the<br />
old Montenegro, when a debt was secured<br />
by Property Title Deed, and the existing documents<br />
testify to it. This issue is now regulated<br />
in the legal system of Montenegro by<br />
the Law on Trust, Law on Mortgage and<br />
Law on Pledge.<br />
In the course of allocation of credit<br />
funds from the Republic Budget, the Government<br />
of the Republic of Montenegro<br />
decided to secure credits through concluding<br />
Fiduciary Contracts. Real Estate Administration<br />
is in charge of estimation of property<br />
value, which is taken into trust. Pursuant<br />
to the provisions of the Law, this Administration<br />
is also established as specialized<br />
agency for registration of the contracts<br />
in the Real Estate Register. The Ministry of<br />
Finance uses the other two laws to secure<br />
debt only in cases when it is not possible to<br />
register a trust.<br />
Namely, in the period of the UN sanctions,<br />
on the proposal of relevant Ministries<br />
and according to appropriate decisions of<br />
the Government, funds from the Republic<br />
Budget were approved for crediting the tourist<br />
economy for the purpose of creation of<br />
conditions for summer and winter tourist<br />
season. For the aforementioned purposes<br />
over 17,0 mil. eur was approved, and in order<br />
to secure the extended credits, for the<br />
following companies' property was registered<br />
trust: "Ada Bojana" - Ulcinj riviera, Vila<br />
"Albatros" - HTP "Albatros". Hotel "Sozina" -<br />
HTP "Korali", Hotel "Palas" - HTP "Budvanska<br />
rivijera", Hotel "Tivat" - HTP "Primorje",<br />
Autocamp "Ciparis" - HTP "Mimoza" - Tivat,<br />
administrative building in Jaz - Montenegroexpress,<br />
Autocamp in Dobrota - HTP<br />
"Fjord", trust was also registered for five facilities<br />
HPT "Boka", Hotels "Boan" and "Šavnik"<br />
- HTP "Onogošt", six catering and<br />
tourst establishments of the SKI Center<br />
"Durmitor", Hotel "Mojkovac" - HTP Mojkovac,<br />
Restaurant "Kisjele vode" - HTP "Brskovo"<br />
Bijelo Polje, annexe to the Hotel "Lokve"<br />
- HTP "Berane", two tourist facilities HTP<br />
"Bjelasica" - Kolašin, Small stadium of the<br />
Sports Center Nikšić, Hotel "Bor" - HTP<br />
"Plavsko jezero", Hotel "Rožaje" - GTP "Turjak",<br />
Hotel "Grand" Cetinje - "Turist" Cetinje<br />
etc.<br />
Apart from tourist economy, in the framework<br />
of credit support to economy and<br />
realization of the Program of Restructuring<br />
as an instrument of credit security, the Ministry<br />
of Finance registered trust also in relation<br />
to the other companies' property,<br />
mostly administration buildings, land or<br />
social standard facilities.<br />
In the procedure of privatization of<br />
Montenegrobank, the Ministry of Finance<br />
assumed certain claims as well as significant<br />
property registered by the Bank for the<br />
purpose of approved credits security, which<br />
value amounts to over 12,0 mil. eur. On this<br />
basis Hotel "Galeb" - property of HTP "Ulcinjska<br />
rivijera" was assumed, and the ownership<br />
was transferred to the benefit of Government,<br />
Factory of Juices "Primorka" -<br />
Bar, five manufacturing divisions "Eksport<br />
drva" - Kolašin (ownership transferred to<br />
the Government), administrative building<br />
"V. Kruščića" - Mojkovac (ownership transferred<br />
to the Government), property "Restaur<br />
Art" - Budva (land and several flats in<br />
Budva, also registered to the benefit of Government),<br />
administrative building EI<br />
"Obod" - Cetinje (transferred ownership),<br />
bus station in Budva and land in Podgorica<br />
- ownership "Merkur" Budva etc.<br />
Ministry of Finance keeps relevant records<br />
and valid documentation, on the basis<br />
of which the enforcment of claims is executed,<br />
for the aforementioned and other fiduciary<br />
property.<br />
ENFORCEMENT OF CLAIMS<br />
In the procedure of initiating the enforcement<br />
of claims, the Ministry of Finance<br />
reviews the company's status, its financial<br />
standing and development perspective.<br />
Thus, the Government of the Republic of<br />
Montenegro, on the proposal of relevant<br />
ministry and consent of the Ministry of Finance,<br />
to the benefit of resolving the future<br />
development of company or its privatization,<br />
approves debt restructuring, debt conversion<br />
into shares (e.g. Metalac - Nikšić,<br />
Factory "4. novembar" - Mojkovac etc.) or,<br />
in relation to extraordinary cases, when the<br />
future of company is certain, it releases the<br />
debt (Mill "M. Asović" - Nikšić, "Javorak" -<br />
Nikšić, Brown coal mine Berane, ŠIP "Berane"<br />
- Berane, "Vukman Kruščić" - Mojkovac<br />
etc.).<br />
When debt recovery is done through<br />
bankruptcy, the Ministry of Finance and<br />
Government also have impact on social and<br />
economic status of debtors as well as on the<br />
privatization process. In that process, special<br />
attention is paid to workers of companies<br />
and their enforcement of rights. As regards<br />
certain cases the Government abandoned<br />
the enforcement priorities or a part<br />
of debt to the benefit of workers (SKI Cen-<br />
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