The new Law on Bankruptcy (Zakon
o stečaju, Official Gazette of the Republic of
Serbia, n.104/09) was enacted on 11 December 2009. Aiming to
diminish or eliminate uncertainties experienced in practice and
related to the initiation of the bankruptcy procedure against the
insolvent companies due to bankruptcy costs, the new Law introduced
the institute of "Automatic bankruptcy". The
provisions regulating the Automatic bankruptcy came into force on
24 March 2010. According to these provisions the National Bank of
Serbia is obliged to provide monthly the competent courts with the
list of legal entities in Serbia whose bank accounts have been
blocked for over 3 years. The Automatic bankruptcy should
facilitate bankruptcy of the long period insolvent company, resolve
respective book keeping ambiguities and potentially decrease base
for corporate income tax.
