Monitoring of SRB Bureau

1. Snežana Sremčević, executive manager Monitoring of SRB Bureau (1.11.2001 – 1.10.2008)

2. Background • SRB Bureau is a Member of the Green Card System as of 1954 • Disintegration of the former SFRY beginning of 90’ of the last century

3. Background • Debts of 21,000.000 DM. • New Bureaus to be obliged to settle their debts occurring while they were in the former country • Bureau of the former Republics (SRB and MNE) – debts of 9,500.000 DM.

4. Reasons for financial instability • UN sanctions and blockade • No foreign currency transfer • EU excluding Greece and France have cancelled Uniform Agreements with former Yugoslavia (SRB and MNE)

5. Suspension

6. Suspension • Oxford General Assembly Decision – 1999 • Conditions: • Payment of all debts (including KOSOVO claims before the conflict in March 1999) • Organization of the Bureau according to the Geneva Recommendation no. 5. to have the regular income

7. Termination of the suspension

8. Termination of the suspension • Conditions fulfilled: • Payments of the debts of KOSOVO insurers; • Consistent financing of our Bureau according to the Geneva Recommendation no. 5;

9. Monitoring

10. Monitoring • Obligatory financial guarantees and reinsurance program • Guarantee Calls statistics • Questionnaires on work of SRB Bureau (insurance cover confirmation, payments of claims, work in general both as handling and guaranteeing bureau)

11. Monitoring • Reinsurance premium and the membership fee paid well before the determined deadline • SRB Bureau has provided for the regular income • The general goal to regain the reputation in the Green Card System

12. Monitoring • Insurance Law - adequate strong supervision • The system solution to revoke the license for the nonpayment of green card claims and monthly contribution to the National Bureau • Close cooperation between SRB Bureau Ministry of Finance, other Govermental bodies and Supervisory authority

13. Monitoring • During the monitoring period SRB Bureau has remitted all the reimbursement demands as prescribed by the Internal Regulations • During this same period SRB Bureau had great number of reimbursement demand in larger amounts that could not have been reimbursed for more than a year • Therefore the intervention of the Council of Bureaux had to be sought

14. Financial prospects of SRB Bureau

15. Financial prospects • Financial guarantee of 4,000.000 € on the account of our Bureau for Green Card obligations • Annual interest income of 250.000 €. • Improved financial stability of the Bureau • Regular annual income of 1,500.000 € • Total assets over 11,000.000 € (reserves, deposits and cash flow)

16. Financial prospects • If necessary Insurance Companies provide for the excess amount in the course of 15 days • Regular income of the Bureau excluding financial guarantee are enough to cover all the obligations • Reinsurance program according to the financial capacity of the SRB Bureau

17. Conclusion

18. Conclusion • Financial stability • Strong leadership position with its Members by regular meetings and seminars • Imposition of the sanctions for defaulting Members • Supported by its members, Ministry of Finance and supervisory authority

19. Thank you for your attention !