Officials announce return of “multilateral compensation” – companies will soon have a possibility of getting over their debts

The state will soon introduce a change in the law, which would open up a possibility to the companies to get over their debts among themselves. Domestic companies have around 800 billion dinars of debt in between them.

Veroljub Duglaic, General Secretary of Banks Association, gave an interview to “Novosti” newspapers, explaining that the only possible solution for getting over debts this high could be inter companies compensation.

Similar attitutde also has Government’s Vice-President, Mladjan Dinkic, who expressed it in Nis, on February, 25th, 2009. He thinks that getting over the debts, i.e. returning of multilateral compensation in the financial system of Serbia, would open up a “magical circle” of inter companies demands of the present.

Reintroduction of this advantage, which was abolished in Serbia a few years ago, will namely be helpful to smaller companies and enterprisers who don’t have easy access to credit loans, and who often equalize late payments with end of their businesses.

This days, we will be able to access information about what kinds of multilateral compensations would be possible: when do participants of compensation have debts and demands from each other, at the same time, or goods compensations, which will open up the possibility of paying through goods.

Compensations were very popular at the time some twenty years ago when there was a flow of unpaid debts. Later, with improvement of financial discipline, compensations lost popularity, developing other methods of payments, mostly forced by the law. Then, the state decided to cancel the advantage of compensations because of very often maluse, which was followed by unpaid and hidden tax money.