Exchange is back in fashion - from October, 1st, Serbia gets Barter Exchange

From October, 1st, Serbia will official get Barter exchange system that resembles the former barter, but which is so much more. The companies will be exchanging among themselves goods and services, but it will be safe and the exchange will take place at market prices, as announced by the founders.
- Barter is faster than compensation and classical transport of goods and services, says Radoje Bozic, director of Barter Exchange in Serbia.
The essence of the whole system, which is supposed to serve as a supplement to the regular trade relations and payment system, is that all companies interested in the exchange will appear with offers and through the mediation of the Exchange will find interested partners (companies) prepared to do business with them. They practically change goods for goods, as is the case in for example construction industry, when they participate in joint project - building of apartments or office premises.
Besides Serbia, Barter exchange doesn`t exist only in Albania, Montenegro and Macedonia out of entire Europe.
Bozis says that although there have been attempts, this exchange couldn`t have been founded in Serbia earlier, as there hadn`t been Central Registry of Real Estate which is the base for guarantee for any work done through Barter.
Practically, it means that the company must make guarantees with something for every transaction. This can be mortgage on a real estate (for which we needed Central Registry), then bank guarantee or security bonds. According to the legal representative of the Barter exchange, Marko Jovanovic, blank notes could be additional, but not primary mean of security.
These collaterals are used in case anything goes wrong, so that both the partners and the Exchange can settle themselves.

Barter exchange was founded as a consortium. In order for a company to become a member, it must submit a request. Then, it submits reports about business and guarantees, after which Barter commission approves or disapproves the membership.
Rules and procedures have been taken by the World Association of Barter Exchanges - IRTA. Service costs from one to three percents depending on the value of the business deal.
Barter Exchange Director says that any procedure in this system relies on bank and tax system, and that anyone operating in the gray market can not access the exchange nor operate within it.
No price fixing
At Barter presentation at the Belgrade Chamber of Commerce, it was stated that the exchange would be undertaken by market prices. We were interested how can they make guarantees of that, especially at the start, when the Exchange won`t have too many players and therefore there will be no bigger competition?
- It is possible that one of the users of the system begins to build value. He entered the system, sold the goods, and remembered he was smarter than others and raised the prices. The Exchange doesn`t get involved in that, but when the company sees it can not sell the goods by that price, and that it must return loan in three months period, it has to lower the prices because the market forces them. This is when the law of supply and demand comes in and market game begins, says Bozic for our Portal.
Contracts made for work worth more than 5 million EUR
Even though Barter exchange is official starting with work on October, 1st, first agreements have already been completed. Bozis discovers that contracts with the value slightly over 5 million EUR have been signed.
- It is a matter of 4 financial contracts of higher value and 3 smaller contracts, says Barter Director in Serbia.
He noted that he would be satisfied if they implement around 100 jobs by the end of the year adding that smaller and medium sized companies are the most frequent users of Barter.
Barter in the world
Experience from around the world says that more than 30% of the companies involved in Barter system are from the construction industry. This system is nothing new in the world. For example, Bozis presented some information from the American Ministry of Trade, according to which in 2012 in USA goods worth 9.000 billion dollars were exchanged through Barter.
According to his assessment, when the Exchange sets off, the turnover in the following year might even be 3 billion EUR in Serbia.
Besides America, Bozis also brought up the example of Turkish Barter exchange which took over 27% of entire country`s trade in a very short amount of time. Turkey participated in establishment of the Exchange in Bosnia and Herzegovina.
Jelena Djelic

Barter Centar d.o.o Beograd

Barter berza

Radoje Božić

kolaterali

upravljanje rizikom

Centralni registar nekretnina

Marko Jovanović

IRTA

razmena robe

razmena usluga