The Government of the Republic of Serbia has determined the coefficient for compensation for the owners of confiscated property after the Second World War, for which natural restitution is not possible, in the amount of 15 percent of the estimated value of the confiscated property.
The Agency for Restitution states that they have been waiting for the coefficient to be determined since 2017, so that the process of returning the confiscated property could be completed and that the last deadline expired in March last year. Payment will begin in 2022 for decisions that become final by 30th June 2021. Payment will be made in advance and the individual amount cannot exceed EUR 10,000 which is distributed to the inheritors regardless of the value of the assessed property. If the amount of compensation, per beneficiary, does not exceed the amount of EUR 1,000, not counting the interest, the payment will be made exclusively in cash, by paying the entire dinar amount according to the middle exchange rate of the National Bank of Serbia, by 31 March 2022.
According to the Agency for Restitution, about 3,000 decisions are ready for execution, with the requirement that additional decisions be made, with the exact amount of compensation in relation to the determined coefficient.
Payment by issuing government bonds
Compensation bonds should also be issued starting in 2022, after the Government of the Republic of Serbia determines all the basic elements of the bonds in the Emission Decision. It is envisaged that the bonds will be issued once a year, in accordance with the Emission Decision, which is made on the basis of all decisions on compensation of the Agency for Restitution that became final between 1 July 2020 until the 30 June 2021.
The bonds will be due annually, with the first payment on 15 January next year in relation to the year when the advance was paid. Exceptions are persons older than 70, who will be paid within five years, and older than 65, who will be paid within a decade.
95% of property returned
According to the Agency, 60,872 decisions have been made so far, and 4,918 business premises, 1,119 apartments and 1,198 buildings have been returned to the former owners and inheritors. About 512 hectares of city construction land, 73,993 agricultural and 5,922 ha of forests were returned, which makes a total of about 95% of the property of the claimed property.
The law provides for a total of two billion euros in compensation, because it is estimated that this amount will not endanger macroeconomic stability in Serbia.
The value of the property that cannot be returned is around 15 billion euros, and the state has given up the substitution of confiscated property, which is requested by the Restitution Network, with the explanation that there is not that much property.
This article is for informational purposes only and does not constitute legal advice. If you need additional information regarding the subject, feel free to contact us by email office@ncrlawyers.com or by phone +381677049551.
