Monitoring of SRB BureauMonitoring of SRB Bureau

(1.11.2001 – 1.10.2008)(1.11.2001 – 1.10.2008)

Snežana Sremčević,

executive manager

BackgroundBackground

SRB Bureau is a Member of the SRB Bureau is a Member of the Green Card System as of 1954 Green Card System as of 1954

Disintegration of the former SFRY Disintegration of the former SFRY beginning of 90’ of the last century beginning of 90’ of the last century

BackgroundBackground

Debts of 21,000.000 DM. Debts of 21,000.000 DM. New Bureaus to be obliged to settle New Bureaus to be obliged to settle

their debts occurring while they were their debts occurring while they were in the former country in the former country

Bureau of the former Republics Bureau of the former Republics (SRB (SRB and MNE) and MNE) – debts of 9,500.000 DM. – debts of 9,500.000 DM.

Reasons for financial instabilityReasons for financial instability

UN sanctions and blockade UN sanctions and blockade No foreign currency transfer No foreign currency transfer EU excluding Greece and France EU excluding Greece and France

have cancelled Uniform Agreements have cancelled Uniform Agreements with former Yugoslavia with former Yugoslavia ((SRB and SRB and MNEMNE))

SuspensionSuspension

SuspensionSuspension

Oxford General Assembly Decision – Oxford General Assembly Decision – 1999 1999

Conditions:Conditions:• Payment of all debts (including KOSOVO Payment of all debts (including KOSOVO

claims before the conflict in March 1999)claims before the conflict in March 1999)• Organization of the Bureau according to Organization of the Bureau according to

the Geneva Recommendation no. 5. the Geneva Recommendation no. 5. to to have the regular income have the regular income

Termination of the Termination of the suspensionsuspension

Termination of the suspensionTermination of the suspension

Conditions fulfilled: Conditions fulfilled: 1.1. Payments of the debts of KOSOVO Payments of the debts of KOSOVO

insurers; insurers;

2.2. Consistent financing of our Bureau Consistent financing of our Bureau according to the Geneva according to the Geneva Recommendation no. 5;Recommendation no. 5;

MonitoringMonitoring

MonitoringMonitoring

Obligatory financial guarantees and reinsurance Obligatory financial guarantees and reinsurance programprogram

Guarantee Calls statisticsGuarantee Calls statistics Questionnaires on work of SRB Bureau (insurance Questionnaires on work of SRB Bureau (insurance

cover confirmation, payments of claims, work in cover confirmation, payments of claims, work in general both as handling and guaranteeing bureau) general both as handling and guaranteeing bureau)

MonitoringMonitoring

Reinsurance premium and the Reinsurance premium and the membership fee paid well before the membership fee paid well before the determined deadline determined deadline

SRB Bureau has provided for the SRB Bureau has provided for the regular income regular income

The general goal to regain the The general goal to regain the reputation in the Green Card System reputation in the Green Card System

MonitoringMonitoring

Insurance Law - adequate strong Insurance Law - adequate strong supervision supervision

The system solution to revoke the The system solution to revoke the license for the nonpayment of green license for the nonpayment of green card claims and monthly contribution card claims and monthly contribution to the National Bureau to the National Bureau

Close cooperation between SRB Bureau Close cooperation between SRB Bureau Ministry of Finance, other Govermental Ministry of Finance, other Govermental bodies bodies and Supervisory authority and Supervisory authority

MonitoringMonitoring

During the monitoring period SRB Bureau During the monitoring period SRB Bureau has remitted all the reimbursement has remitted all the reimbursement demands as prescribed by the Internal demands as prescribed by the Internal RegulationsRegulations

During this same period SRB Bureau had During this same period SRB Bureau had great number of reimbursement demand great number of reimbursement demand in larger amounts that could not have in larger amounts that could not have been reimbursed for more than a yearbeen reimbursed for more than a year

Therefore the intervention of the Council Therefore the intervention of the Council of Bureaux had to be soughtof Bureaux had to be sought

Financial prospects of SRB Financial prospects of SRB BureauBureau

Financial prospectsFinancial prospects

Financial guarantee of 4,000.000 € on the Financial guarantee of 4,000.000 € on the account of our Bureau for Green Card account of our Bureau for Green Card obligations obligations

Annual interest income of 250.000 €. Annual interest income of 250.000 €. Improved financial stability of the Bureau Improved financial stability of the Bureau Regular annual income of 1,500.000 €Regular annual income of 1,500.000 € Total assets over 11,000.000 € (reserves, Total assets over 11,000.000 € (reserves,

deposits and cash flowdeposits and cash flow))

Financial prospectsFinancial prospects

If necessary Insurance Companies If necessary Insurance Companies provide for the excess amount in the provide for the excess amount in the course of 15 days course of 15 days

Regular income of the Bureau Regular income of the Bureau excluding financial guarantee are excluding financial guarantee are enough to cover all the obligations enough to cover all the obligations

Reinsurance program according to Reinsurance program according to the financial capacity of the SRB the financial capacity of the SRB BureauBureau

ConclusionConclusion

ConclusionConclusion

Financial stabilityFinancial stability Strong leadership position with its Strong leadership position with its

Members by regular meetings and Members by regular meetings and seminarsseminars

Imposition of the sanctions for defaulting Imposition of the sanctions for defaulting MembersMembers

Supported by its members, Ministry of Supported by its members, Ministry of Finance and supervisory authorityFinance and supervisory authority

Thank you for your attention !Thank you for your attention !