The 2001 Succession Agreement Defined The Distribution Method, Which Was Most Effectively Realized When Diplomatic Offices Were Concerned, But Was Difficult In The Event It Came To Citizens’ And Company Assets.
When Yugoslavia fragmented two decades ago, its property was distributed among six newly-formed states. The 2001 Succession Agreement defined the distribution method, that has been most effectively realized when diplomatic offices were concerned, but was difficult if this came to citizens’ and company assets. An actual solution to that issue to expect only within a new joint framework, i.e. when all of the ex-Yugoslav republics become EU member-states. More inside INTERNATIONAL ECONOMIC REVIEW, served by Biljana Blanuša.
When the Succession Agreement was signed in Vienna in 2001, each one of the states that were created with the disintegration of former Yugoslavia got its own little bit of the cake. The distribution employed the model utilized by the IMF for the distribution of Yugoslav debts. On the basis of that model, Serbia and Montenegro, the member-states from the then FR Yugoslavia, were granted 36.5% from the property, Croatia real estate was granted 28.5%, Slovenia 16.4%, Bosnia and Herzegovina 13.2% and Macedonia 5.4%. However, the agreement has been only partly realized thus far and the process was intensified only this past year, when 44 diplomatic edifices were distributed, while another 79 remain waiting to be distributed. A few of the buildings, namely those in Africa and Latin America, will go on sale as no country has an interest in them, which is to improve state budgets. Serbia should expect tens of million euros on that basis.
In the act of distribution of diplomatic offices, Serbia has obtained some twenty buildings up to now, seven of which are embassies and six residences, some of which are located in very important centres, such as Berlin, London, Athens, Rome, Budapest or Ankara, and in addition consular offices in Thessaloniki and Sydney, a building in Washington, DC along with a house and apartments in Ancara and Trieste. Two valuable items of real estate are to be finally sold in 2010 - an apartment in Nyc, the value of which is estimated at 20 million USD along with the embassy building in Bonn, estimated at some 2.5 million EUR. Serbia is always to receive a significant amount of the proceeds considering its share in the total assets.
Former Yugoslavia also had forex funds abroad, which have been given to the successor-states twice so far. An accumulation 237 million dollars from US banks was distributed in 2003 and Serbia and Montenegro obtained 90 million. 2 yrs later, foreign currency funds from banks far away were distributed as well, Serbia and Montenegro receiving 84 million dollars from the total amount of 221 million..
Ths issue seems to be the assets of companies, which, due to the traumatic fragmentation of Yugoslavia, have been often vulnerable to various types of misuse and embezzlement. Many organisations, having lost valuable property, sustained immense damage and no financial indemnification was feasible because of the complicated relations among the newly-formed states. The complete process has been additionally complicated with privatization, like a considerable part of the assets has obtained new owners, so numerous lengthy court procedures they are under way. However, the situation is different everywhere. For instance, the well-known furniture manufacturer „Simpo“ of Vranje, inside south of Serbia, has succeeded in recovering its property in Macedonia, where they are operating successfully, while the same company is having difficulty recovering their 100 million euros’ worth facilities in Croatia and Bosnia and Herzegovina as reported tagza.