The reform of bankruptcy legislation in Serbia began with the enactment of the new Law on Bankruptcy Procedure (‘Official Gazette of RS’ No. 84/04), which became applicable as of 2 February 2005. In addition to a number of new features that this law introduced into the Serbian bankruptcy system, it provided for the setting up of the Bankruptcy Supervision Agency (BSA). Under the Law on Bankruptcy Supervision Agency (‘Official Gazette of RS’ No 84/04, of 24 July 2004, and No 104/09) the BSA was established, which began operating on 24 February 2005, to monitor the development of bankruptcy administrator profession and maintain oversight over the work of licensed bankruptcy administrators.
The new regulations governing bankruptcy which were adopted in 2010, and in particular the Law on Bankruptcy (‘Official Gazette of RS’ No 104/09) and the Law Amending the Law on BSA (‘Official Gazette of RS’ No 104/09), define more clearly the position, rights and obligations of the BSA, as well as the powers within the scope of the BSA duties as a regulatory body, particularly in relation to its supervisory task, in which way the legal gaps and problems identified in practical implementation of previous regulations will be eliminated.
The main duties entrusted to the Bankruptcy Supervision Agency under the Law on Bankruptcy Supervision Agency (‘Official Gazette of RS’ Nos 84/04 and 104/09) are to:
- Issue and renew licences for the performance of duties of a bankruptcy administrator;
- Organize and conduct bankruptcy administrator licensing examination;
- Maintain professional supervision over the work of bankruptcy administrators, revoke licences and take other measures prescribed by this law and the law governing bankruptcy;
- Keep the Register of licensed bankruptcy administrators.
Efficient supervision over the work of bankruptcy administrators and a uniform assessment of their performance;
- Standardized work of licensed bankruptcy administrators;
Higher professional competency and standards of the profession itself and higher professional quality of bankruptcy administrators;
Promotion and improvement of bankruptcy administrator profession, lawful conduct and increased accountability, higher professional criteria necessary for the successful performance of duties within this profession;
Creation of certainty for creditors regarding the implementation of efficient, rapid and lawful bankruptcy procedure over their debtors that have become insolvent, which will enable proportional settlement of their claims.
The reform of bankruptcy legislation, which began in 2005, and the adoption of new bankruptcy regulations in 2010, have created favourable conditions for swift elimination from the economic system of all business entities who fail to justify their further existence and sustainability, thus substantially improving the climate that will be conducive to increased attractiveness of Serbian economy for foreign investments in the future.