1 option
Republic of Serbia Financial Sector Assessment Program Update : Corporate and Household Debt Restructuring.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- International Monetary Fund.
- Series:
- Financial Sector Assessment Program
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Administrative Costs.
- Asset Management.
- Bank Accounts.
- Bankruptcy.
- Bankruptcy and Resolution of Financial Distress.
- Capital Markets.
- Collateral.
- Debt Markets.
- Debt Restructuring.
- Deposit Insurance.
- Finance and Financial Sector Development.
- Financial and Private Sector Development.
- Financial Crisis.
- Financial Institutions.
- Financial Regulation & Supervision.
- Fraud.
- Insolvency.
- Legal Framework.
- Mortgages.
- Ownership Rights.
- Penalties.
- Property Rights.
- Receivership.
- Small Businesses.
- Standards and Financial Reporting.
- Transparency.
- Local Subjects:
- Administrative Costs.
- Asset Management.
- Bank Accounts.
- Bankruptcy.
- Bankruptcy and Resolution of Financial Distress.
- Capital Markets.
- Collateral.
- Debt Markets.
- Debt Restructuring.
- Deposit Insurance.
- Finance and Financial Sector Development.
- Financial and Private Sector Development.
- Financial Crisis.
- Financial Institutions.
- Financial Regulation & Supervision.
- Fraud.
- Insolvency.
- Legal Framework.
- Mortgages.
- Ownership Rights.
- Penalties.
- Property Rights.
- Receivership.
- Small Businesses.
- Standards and Financial Reporting.
- Transparency.
- Other Title:
- Republic of Serbia Financial Sector Assessment Program Update
- Place of Publication:
- Washington, D.C. : The World Bank, 2009.
- System Details:
- data file
- Summary:
- Nonperforming Loans (NPLs) in the banking system constituted 16.5 percent of total loans, owing primarily to the corporate sector. The Credit Bureau, maintained by the Association of Serbian Banks, also discloses dramatic increases in corporate and retail defaults over the past year. NPL resolution and loan loss mitigation is hampered by a still evolving but uneven collateral and enforcement framework that complicates restructuring and leads to delays and lower recoveries in execution procedures. Corporate debt resolution is further complicated by a pattern of corporate misconduct designed to circumvent a creditor's legitimate enforcement rights. This is particularly acute in response to account blockages. In an effort to survive, business owners frequently engage in a pattern of corporate fraud to avoid their legitimate obligations by creating alter ego or shell companies through which to conduct their ongoing business activities, with all funds passing through the new legal entity. That entity is free from debt and can open bank accounts, engage in contracts, and carry on business as usual using the corporate assets of the prior legal entity under cleverly disguised lease or contractual use obligations. In most modern economies, such practices constitute fraud or fraudulent transfers that can carry stiff penalties, including loss of business privileges. Other reported abuses include applying for voluntary dissolution during which the owner or a friendly receiver continues to operate the business for years in an apparent wind-down of the business, while ignoring creditor claims.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.