serbia iair general meeting and conference, bangkok 2007 1 report of bankruptcy supervision agency...

IAIR General Meeting and Conference, Bangkok 2007 1Serbia

REPORT

OF

BANKRUPTCY SUPERVISION AGENCY (BSA)Trends and developments

Prepared by

Vesna GaćešaActing Director, Bankruptcy Supervision Agency


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


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;


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


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)


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


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


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


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



• 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



• 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


REPORT ON LICENSING EXAMINATION AND LICENSES ISSUED TO DATE


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)


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

863

307 (35.5%)

0

100

200

300

400

500

600

700

800

900

2005

exam-takers

"passed"

"


Exams in 2006

BSA organized and held two exams

• April (08.04.2006)• June (24.06.2006)

• 176 exam-takers,• 105 (59.6%) “passed”

176

105(59.6%)

0

20

40

60

80

100

120

140

160

180

2006

exam-takers

"passed"


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

118

48(40.7%)

0

20

40

60

80

100

120

2007

exam-takers

"passed"


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:


• In the first half of 2007:


185

153

26

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007


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

56%

26%

18%

Economists - 255Lawyers -120Other professions - 85

77%

23%

males - 356 females - 104

41%

59%

Belgrade - 189 Other towns - 271


Overview of cumulative results and the candidate structure by age, gender and occupation (cont.)

• 362 licenses were issued upon the request of BAs:

54%

23%

23%

Economists - 197Lawyers - 83Other professions - 82

81%

19%

males - 293 females - 69

2%12% 10%

36% 40%

Under 30 - 6 Age group 30-40 - 44Age group 40-50 - 131 Age group 50-60 - 14460+ - 37


Engagement of Bankruptcy Administrators in cases

• Conditions for appointment1) 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


Engagement of Bankruptcy Administrators in cases (cont.)

• 1118 cases with the BSA• 809 active cases• 309 filed cases

72%

28%

active cases - 809 filed cases - 309



• 457(56%) individuals acting as BAs• 352 (44%) licensed BAs - agents of the specialized institution

PABU

56%

44%

Individuals - 457 PABU - 352



• Out of a total of 362 licensed bankruptcy administrators, 238 are engaged in cases

• Individuals (165)• Agents of the PABU (163)

66%

34%

engaged in cases - 238 non-engaged - 124


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.


Thank you !

Bankruptcy Supervision AgencyTel +381 11 2628-590

Fax +381 11 2632-235

11000 Belgrade, 14 Kneza Mihaila St.

Republic of Serbia

Visit the official Internet presentation of theVisit the official Internet presentation of theBSA atBSA at::

www.alsu.sr.gov.yu

serbia iair general meeting and conference, bangkok 2007 1 report of bankruptcy supervision agency...

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