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Slovenia Business Week no. 28/2005: Yugoslav Successors Reach Agreement on Bank Deposits

The financial committee of the successors to the former Yugoslavia reached an agreement on Thursday, 07 July on how to divide the once common assets deposited with foreign commercial banks

The meeting in Ljubljana was successful as the representatives of the five successor states finally agreed on how to divide the US$ 221m, Slovenian representative France Arhar has told STA.  

In line with the agreement, Slovenia is to come into 16% of the common money.  

According to Arhar, the committee was able to reach an agreement today after concluding that the issue of deposits has nothing to do with a question of guarantees issued for former Yugoslav companies in third countries.  

At the committee's previous meeting in Skopje last May, the Serbian side insisted that the money deposited with commercial banks should be used for settling liabilities stemming from guarantees issued for the companies in third countries.  

The committee established, according to Arhar, that the question of guarantees is of commercial nature, while the succession agreement only deals with operations of the once common state institutions.  

The successors' representatives also discussed the commercial operations that the Yugoslav National Bank conducted with the Yugoslav Army, adopting a decision on the distribution of funds deposited with foreign banks.  

The committee decided that the army's deposits, which amount to US$ 84m, should be returned to companies conducting the business for the army. Slovenia is to be entitled to US$ 400,000.  

Arhar estimated that the committee reached a major breakthrough today, with the successor states willing to make compromise in order to actually implement the 2001 succession agreement.  

The committee agreed on the next meeting in autumn in Belgrade, when it is due to discuss the clearing debt of former Czechoslovakia and Libya, contributions to the UN, monetary gold and other open issues, according to Arhar.

Source: Slovene Press Agency STA

Author: STA