For 10 years of multilateral compensation on the Banja Luka Stock Exchange, 1.52 billion KM of liabilities and claims were compensated.
The Banja Luka Stock Exchange announced that the first multilateral compensation was held on October 30, 2015.
“This was preceded by the unanimous adoption of the Law on the Unified System for Multilateral Compensation and Cessions by the National Assembly of the Republic of Srpska. On September 22, 2015, the Government of the Republic of Srpska adopted the Decision on the Implementation of the First Multilateral Compensation,” said the Banja Luka Stock Exchange.
They added that 53 multilateral compensations have been held so far.
“More than 2,800 participants compensated liabilities and claims. 8,300 business entities were registered on the system for multilateral compensations and cessions. 80 business entities from the Federation of Bosnia and Herzegovina compensated liabilities and claims on a voluntary basis,” the announcement reads.
When looking at the structure by sector, the private sector compensated the most (32%), followed by public companies (29%), the Republika Srpska treasury (26%), public funds (9%) and local self-government units (4%), Nezavisne Novine reports.
“In the last two years, there has been a noticeable trend of increasing interest in multilateral compensations, which can be seen in the significant increase in the amount of compensated obligations. Currently, multilateral compensations are held six times a year.
Although the results in the first 10 years have exceeded expectations, there is room for improvement of the system for multilateral compensations and cessions. First of all, it would be desirable for an even greater number of business entities to participate in compensations, because in this way the amounts of compensated liabilities and claims are multiplied,” stated the Banja Luka Stock Exchange.
They say that the introduction of the ITA would enable additional amounts of compensation based on compensated indirect taxes.
“The ITA would report obligations based on VAT refunds, while business entities would report obligations based on VAT. The system is already technically ready for this change, which refers to the simple addition of invoices. In this way, the collection of indirect taxes would be further accelerated and liquidity would increase. The system for multilateral compensations and cessions could be improved by introducing an electronic acceptance order, which would be an irrevocable order from the debtor to transfer funds to the creditor on a certain date. The compensation system is ready to support business operations with an electronic acceptance order, which would further simplify debt-creditor relations and make the collection of receivables more efficient,” the announcement concludes.
