Fic rEcommEndationS - Eurobank EFG

import and export of goods and services even if such
activities have not been registered with the NBS by the
resident. Consequently, the resident is held liable for not
registering credit transactions with foreign entities, but
will not be sanctioned by withholding foreign exchange
payments or charges;
The obligation to repatriate the profit realised from investment
works abroad and a retained guarantee deposit
for the executed works has been abolished. These
restrictions were abolished to comply with the request
of WTO members;
The extension of the number of cases where payments in
the Republic of Serbia can be made in foreign currency.
Amendments to Article 34 of the Forex Law introduce
certain new cases when payments among residents, and
between residents and non-residents in the country, can
be performed in a foreign currency. Such new cases include,
among others, payments on the grounds of: donations,
certain bank guarantees, EU aid, foreign trade
and others. Also, a domestic commercial bank is allowed,
upon order of a non-resident – purchaser of the goods/
services to whom a bank is granting a commodity credit,
to perform payments in a foreign currency to a resident –
seller of goods/services in foreign trade exchange;
Amendments to the Forex Law enable members of the
European Union, OECD, international financial organisations,
development banks or financial institutions
founded by foreign countries to issue long-term bonds
denominated in dinars, which should increase the offer
of loans in dinars and stimulate investments in Serbia.
introduction of new types of foreign exchange
operations and improvement of certain provisions
Amendments to the Forex Law allow new types of foreign
exchange operations, most importantly: the granting of
credits and loans to residents in dinars by international
financial organisations founded by foreign states, adding
guarantee operations and transactions with financial derivatives
to capital transactions and improved relevant provisions
in this respect, specifically:
Foreign credit operations include Dinar-denominated
credits between residents and non-residents, whilst credit
operations in the country are considered to be credits
provided by banks to residents in foreign currency;
All resident legal entities are able to take credits and
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loans from non-residents in their own name and for their
own account, as well as in their own name and on behalf
of a third party, and provide commercial loans to nonresidents;
Within the framework of capital transactions, guarantee
operations are now included as a new type of operations
that can be performed by banks, as well as by resident legal
entities. The amendments to the Forex Law stipulate
that a bank may issue guarantees, sureties and other types
of securities between residents and non-residents, as well
as obtain guarantees from foreign banks, and guarantees
and sureties from non-residents based on such operations;
also, resident legal entities can provide a guarantee
to non-residents for operations of import of goods and
services of another resident and has to obtain a guarantee
and a surety from non-residents for operations of export
of goods and services, or for performing works abroad to
another non-resident, as well as for operations between
such a resident and another resident legal entity;
In terms of foreign credit operations, amendments to
the Forex Law have introduced an innovation in bank
guarantees and sureties issuing operations. Now, a nonresident
may, without limitations, provide guarantees,
sureties and other security instruments in favour of a
non-resident creditor, based on loans taken by residents
abroad;
In terms of capital transactions, the amended Article 13
stipulates that residents (legal entities, individuals and entrepreneurs)
can make payments for purchases of foreign
long-term debt securities (from international financial organisations,
etc.), regardless of whether these long-term
debt securities were issued abroad or in the country. It is
further provided that non-residents cannot invest in shortterm
securities in the country, regardless of whether securities
are issued by a resident or non-resident.
improvement of existing solutions
To avoid any future ambiguity, further amendments to the
Forex Law define which residents and non-residents can
conclude foreign credit operations in foreign currency.
The decision based on which resident individuals cannot
conclude foreign credit operations still remain in force. In
addition, improvements have been made in respect of the
following:
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