Fic rEcommEndationS - Eurobank EFG

FOREIGN EXCHANGE
OPERATIONS
WHitE BooK BaLancE ScorE card
Recommendations:
Introduced
in the WB:
Significant
progress
Certain
progress
No
progress
Terms and conditions under which non-residents may purchase receivables
originating from the foreign trade and international credit transactions
should be enacted by the Government.
Approval of the Ministry of Finance for compensation of the realised export
2008 √
of goods and services with the realised import of goods and services should
be abandoned.
2009 √
Enable setting-off of mutual claims in the international payment operations.
Provisions of the Law on Insolvency on netting, including the reference to the
2010 √
framework financial agreements, as well as the different modalities of such
agreements (e.g. those related to the repo transactions or securities lending)
should be properly recognised by the foreign exchange regulations.
Obligation of non-residents – legal entities to present certificates on tax
settlement, issued by the tax authorities in case of transfer of funds earned
2010 √
from the securities transactions and revenues arising from securities, from
non-resident accounts to foreign accounts abroad, should be excluded in
order to reduce costs of investors – non-residents and to achieve higher
efficiency in international funds transfers.
2009 √
cUrrEnt SitUation
The amendments to the Law on Foreign Exchange Operations
(Official Gazette of the Republic of Serbia No. 62/2006
and 31/2011; hereinafter: “Forex Law”), came into force on 17
May 2011, with a delayed effective date for certain provisions
related to exchange operations set at 1 January 2012.
Amendments to the Forex Law demonstrate the tendency
of general liberalisation of the foreign exchange regime in
Serbia, improvement of existing legal solutions and introduction
of new categories, i.e. operations, in the Serbian
foreign exchange system.
In principle, changes were made, both due to dilemmas
arising in the application of certain legal provisions in practice
and to harmonisation with other regulations adopted
in the meantime and with recommendations of international
financial organisations, such as the World Trade Organization
(WTO).
FIC members were actively involved in adjusting and proposing
certain changes to the Forex Law.
PoSitiVE dEVELoPmEntS
Liberalisation of the foreign exchange regime
Bearing in mind the aspirations of the Republic of Serbia
towards accession to the WTO, it is not surprising that the
changes made in the foreign exchange regime were primarily
related to the liberalisation of foreign exchange operations
and thus liberalisation of foreign trade, as follows:
The deadline for entry of foreign currency into the country
on grounds of current transactions has been prolonged
from 180 days to one year. By the expiry of this
period, these transactions are considered to be credit
transactions with foreign entities and are therefore registered
with the National Bank of Serbia (NBS). The amendments
to the Forex Law provide a new definition of foreign
credit operations, now considered as exports and
imports of goods or services for which payment has not
been collected and/or made for longer than one year, as
well as goods and services paid in advance that were not
imported and/or exported for longer than one year from
the date of advance payment. It ought to be stressed that
a commercial bank can perform payment operations for
98 top �