The Government proposes four financial laws to protect investors and to liberate the market

Yesterday, the Serbian government adopted the four laws on the financial system, which will allow the creation of better and less risky environment for foreign investors.

As specified in the statement of the Ministry of Finance of Serbia, the proposals of the laws on the capital market were adopted, as well as the new Law on investment funds, changes and amendments to the Foreign Exchange Act and amendments to the Law on Financial Leasing.

The aim of the new law on capital market, as it is said, are greater investor protection and market liberalization. This law will create an environment in which a larger number of domestic and foreign investors will be able to participate in trade and development of the Serbian capital market, as it is said.

Ministry of Finance of Serbia points out that the biggest change brought by the law is differently structured capital market, introduction of the concept of so-called multilateral trading platform and the possibility of buying and selling shares over the open capital market.

According to the Ministry, by amending the Foreign Exchange Act it will be provided to foreign financial institutions to issue in Serbia long-term dinar bonds.

This will, as stated, help develop the domestic capital market, it will increase offer of loans in dinars, and stimulate investment in Serbia.

There will be introduced an unified register of foreign currency accounts of legal entities and entrepreneurs, which will facilitate their control. The adopted amendments to the law shall be in accordance with the rules and principles of the World Trade Organization, it was said in the statement.

Adopted proposals on amendments to the Law on Financial Leasing, provide real estate leasing and abolishes the minimum period of two years for the lease contract. These two changes were outlined as necessary in the report of the Overall Regulatory Review.

Purposes of amending the law on financial leasing are more legal security, elimination of the problems of financial leasing, provision of adequate protection, development of the leasing market and preventing money laundering and terrorist financing.