Citizens’ Frozen Foreign Currency Savings

Eurobank Direktna  a.d. , being the legal successor of “Nacionalna štedionica – banka”, services the conversion of citizens’ foreign currency savings into Government bonds of the Republic of Serbia and services the payment of bonds to the clients of the banks that are undergoing the bankruptcy or liquidation proceedings as well as the disbursement of bonds to the clients of former Jugobanka Jugbanka a.d. Kosovska Mitrovica from the corresponding proprietary account opened with the Central Securities Depository and Clearing House (CSD).

All citizens that are holders of frozen foreign currency accounts and were domiciled on the territory of the Republic of Serbia on 04th July 2002 are eligible to have their matured bonds converted and disbursed in compliance with the Law on Settlement of Public Debt. The holders of foreign currency deposits books and accounts from former Republics of the SFRY as well as the citizens of former Republics of the Federal Republic of Yugoslavia (FRY) have to wait for the distribution balance sheet i.e. the finalization of succession process for their claims to be satisfied. In terms of Article 3 of the Law on Settlement of Public Debt of FRY related to citizens’ frozen foreign currency savings, such public debt is distributed between the Republic of Serbia and the Republic of Montenegro – proportionally to the amount of foreign currency savings of the citizen residing on the territory of these Republics.

The eligibility for conversion is determined for each foreign currency deposit. A Depositor who holds several foreign currency accounts is eligible to receive portions (tranches) thereof for each account per year. Upon completion of conversion Depositor receives from the Bank a Certificate of Conversion of his/her foreign currency deposit into Government bonds of the Republic of Serbia including their registration on the proprietary account opened with CSD.

When frozen foreign currency savings are converted into Government bonds of the Republic of Serbia, the corresponding proprietary accounts are opened with the Central Securities Depository and Clearing House (CSD). In order to have the frozen foreign currency savings converted into government bonds and have the funds on the allocated proprietary account with the CSD available for their disposal clients have to provide letters of authorization certified at Court or by their Consulate.

In terms of Article 5 of the Law on Settlement of Pubic Debt of the FRY with regards to citizens’ foreign currency deposits with Dafiment banka a.d. Beograd and Banka Privatne Privrede Crne Gore d.d. Podgorica (“Official Gazette of FRY” Issue No.36/2002) and pursuant to the Decision on Emission of Government Bonds of the Republic of Serbia for the purpose of settlement of the above mentioned liabilities, all foreign currency deposits with these two banks are converted into Government bonds of RS denominated in EUR. The National Bank of Serbia (NBS) processes all the information related to respective depositors of Dafiment banka a.d. Beograd, in liquidation, and Banka privatne privrede Crne Gore d.d. Podgorica, in bankruptcy, and the Committee determines the amount of claim thereof. Eurobank Direktna a.d. is entitled only to service the conversion and distribution to depositors of these two banks fully in compliance with the Law. The right to conversion is determined on the basis of identity number of depositor – citizen. Depositor who holds several contracts will exercise his/her rights through one contract which will present the sum of all his/her contracts and will be entitled to one portion (tranche) thereof per year. Only the depositors residing on the territory of the Republic of Serbia are entitled to this conversion and the disbursement of mature bonds. Upon completed conversion, Depositor receives from the Bank a Certificate of Conversion of his/her foreign currency savings into Government bonds of the Republic of Serbia including their registration on the proprietary account opened with CSD. In order to have the frozen foreign currency savings converted into government bonds of RS and have the funds on the allocated proprietary account with the CSD available for their disposal clients may provide letters of authorization certified at Court or by their Consulate.

By Decision of the Constitutional Court of the Republic of Serbia, passed on the session of 23rd May 2013, and published in the Official Gazette of RS, Issue No. 103/2013 on 26th November 2013, the Ordinance governing details and method of disbursement of citizens’ frozen foreign currency savings deposited with Jugobanka Jugbanka a.d. Kosovska Mitrovica became null and void. This Ordinance ceased to be valid on the date when this Constitutional Court’s Decision was published, therefore, Eurobank Direktna a.d., as the legal successor of the bank Nacionalna stedionica Banka a.d., was no longer the paying bank for the frozen foreign currency savings deposited with Jugobanka Jugbanka a.d. Kosovska Mitrovica.For those clients who have not yet had their frozen foreign currency savings deposited with Jugobanka Jugbanka a.d. Kosovska Mitrovica converted into Government bonds, the Government of the Republic of Serbia will appoint the bank which will service such frozen foreign currency savings deposited with Jugobanka Jugbanka a.d. Kosovska Mitrovica, and will regulate in detail all issues related to the servicing of such savings. The clients who have already had their frozen foreign currency savings deposited with Jugobanka Jugbanka a.d. Kosovska Mitrovica converted into e-bonds and thus hold the corresponding proprietary accounts opened with CSD will continue to communicate with the branches of Eurobank Direktna a.d.

The Law on Settlement of Public Debt of RS subject to the unsettled citizens’ foreign currency savings deposited with the banks which are registered on the territory of RS but have their branches located on territories of former Republics of SFRY came into effect on 31st December 2016.

Pursuant to this Law, the Ministry of Finance – Public Debt Administration Department announced on 23rd February 2017 a public call to all citizens from the territories of former Republics of SFRY who held deposits with business banks in the Republic of Serbia or in any other Republic of former SFRY, as well as to all citizens of the Republic of Serbia who held frozen foreign currency savings deposited with bank units in the former Republics of SFRY, to forward their claims to the Ministry of Finance, Public Debt Administration Department, at the address: 11000 Beograd, Sremska 3-5, starting from 06th March 2017.