"Automatic bankruptcy" in Serbia from March 31st

Application of the new Law on Bankruptcy in Serbia, which enables automatic introduction of bankruptcy in the firms whose accounts are blocked for more than three years, starts today (March 31, 2010).

That procedure will lead to removal of about 7,000 illiquid firms from the market, which will contribute to prevention of expansion of illiquidity. At the same time, in accordance with that Law, the firms can file for regular bankruptcy proceedings, carry out the process of reorganization and revival of the company.