I – BASIC PROVISIONS
Article 1.
This Law determines procedure and way of preparation of Opening Balance Sheets of enterprises from Art.1.of the Law on privatization of Enterprises ("Official Gazette of the Federation BiH", No. 27/97) and Banks from Art 3.of the Law on privatization of Banks, for privatization and settlement of liabilities and claims between enterprises, banks and the Federartion of Bosnia and Herzegovina (further: Federation).
Article 2.
Opening Balance Sheet is a review of assets, rights, liabilities and capital of entrprises and banks (further: subjects) entering privatization process.
Opening Balance Sheet consists of:
1. Passive Sub-Balance Sheet-is a value of assets and rights with belonging capital and liabilities, which is not in the ownership, respectively under subjects' control, as well as a value of rights and liabilities, which is according to this Law under special treatment and obligations for preparations of Opening Balance Sheet, from Sect.1.of this Article.
2. Neutral Sub-Balance Sheet containing a value of apartments and assets with belonging capital, for which, by the Act of authorized body, is initiated a Restitution procedure.
3. Active Sub-Balance Sheet-contains a value of assets and rights with belonging capital and liabilities, not included in Sub-Balance Sheets from Sect.1.and 2.of this Article.
Subjects can, according to their needs, state assets and rights and capital and liabilities in analytical form, too (Sub-Balance Sheets), according to provisions of this Law.
Article 3.
In cases when two or more enterprises in their Opening Balance Sheets state the same rights, the same assets, the same liabilities and the same capital, they will not be privatized unless, according to special provisions, way of disposal of disputable property is defined.
Authorized body will initiate Auditing of company from Sect. 1.of this Article.
Special provision from Sect 1.of this Article, which will determine more closely a way and procedure of Auditing, will bring the Government of Federation during 30 days after this Law comes into force.
Disposal right to real-estate on built constructed land, registered in Land Books for owner-subject's sake, from Article 2.of this Law, becomes owned property by a day when it comes to force.
Article 4.
Assets, rights, capital and liabilities of enterprises are stated in Opening Balance Shets as to Book Value, on a day of preparing the Opening Balance Sheet, determined by this Law.
Assets, rights capital and liabilities of banks are stated in Opening Balance Sheet of banks as to Book value, respectively determined in Auditing procedure of bank, according to Article 3. of the Law on privatization of Banks.
Article 5.
Book value as to Article 4. of this Law is a value determined on basis of provisions in Accounting and fiscal system, valid on a day of preparing Opening Balance Sheet.
Opening Balance Sheet of enterprises is a base of assessment of initial price of enterprises for privatization, and the same is prepared within deadline determined by Article 7. of the Law on privatization of enterprises.
Article 6.
Value of Opening Balance Sheet is expressed in convertible marks (KM).
Opening Balance Sheet expressed in KM, after being accepted by authorized body, becomes Balance Sheet of subject from Article 2.of this Law, in which are expressed all changes in business activities.
If, since the day of preparing of Opening Balance Sheet have passed more than six months, subjects of privatization are due to submit corrected Opening Balance Sheets, with values expressed in KM.
Article 7.
Enterprises and banks from Article 1.of this Law prepare Opening-Balance Sheet, as to 31. 12. 1997.
II – OPENING BALANCE SHEET OF ENTERPRISES
Article 8.
Passive Sub-Balance Sheet of enterprises express the following values:
1) not-owned assets, respectively not controlled by enterprise;
2) balance of liabilities and claims till 31. 3. 1992., on basis of relations towards legal and physical entities on the territory of other ex-Republics of SFRY and Republc Serpska;
3) liabilities to banks on basis of ino- credits, before 31. 3. 1992.;
4) balance of liabilities of enterprises from Federation on basis of delivering finished products, repro materials and equipment and liabilities of enterprises to Federation, on basis of unpaid duty, tax, contributions and financial loans;
5) prescribed unpaid share capital; and
6) damage caused by war activities.
Article 9.
Values of assets from Article 8. Section 1. of this Law is booked off to capital and liabilities' charge.
Article 10.
If value of liabilities from Article 8. Section 2.of this Law is bigger than claims' values from the same Section, equilibrium of Balance Sheet is achieved by enlargement of enterprise' capital.
If value of claims from Article 8. Section 2.of this Law is bigger than value of liabilities from the same Section, equilibrium of Balance Sheet is achived by reducing enterprise' capital.
Article 11.
For value of liabilities from Article 8.Section 3.of this Law, the state, respectively private capital of enterprises is enlarged.
Article 12.
Provisions of Article 10 of this Law are applied to liabilities and claims from Article 8. Section 4. of this Law.
Article 13.
Value of subscribed unpaid share capital from Article 8. Section 5. of this Law is booked off on capital charge.
Article 14.
Value from Article 8.Section 6.of this Law in the amount of damage of constructed objects, equipment and other tangible assets, sttated on 31. 12. 1995., is booked off on enterprise capital and liabilities' charge.
Article 15.
After finished actions from Article 8. according to Articles 9. to 14. of this Law, and related to Article 30. of this Law, risk level of enterprises' liabilities to banks, is to be determined.
Liability from Paragrapph 1.of this Law, which level of payment risk, based upon written bank information,is more than 50%, is written off in favour of the state capital in balance of enterprises.
Share capital of enterprises in the state ownership of banks is written off in favour of the state capital of enterprises.
Article 16.
Neutral Sub-Balance Sheet of enterprises states the following:
1. value of apartments, based upon making apartment value according to Article 18. Paragraph 2.of the Law on purchase of apartments with tenancy rights ("Official Gazette of the Federation BiH", No. 27/97), with belonging state/public capital;
2.value of assets which are by Act of authorized body subject to Restitution procedure.
Value of assets which are subject to Restitution is booked off on charge of state/public capital of enterprse.
Article 17.
Active Sub-Balance Sheet of enterprises, within this Law, states assets and rights and capital and liabilities, not included in Passive or Neutral Sub-Balance Sheet.
Article 18.
Active Sub-Balance Sheet of enterprises should state value of share capital, according to Auditing from Article 6.of the Law on privatization of enterprises.
Article 19.
Enterprises can in privatization process sell assets and rights from Passive Sub Balance Sheet.
Article 20.
Remained assets are transferred into rights of Passive Sub Balance Sheet, after finished and approved Privatization Program.
Assets and rights stated in Neutral Sub Balance Sheet of enterprises, after approved Privatization Program, are transferred to bodies determined by Law on purchase of apartments with tenancy rights and Law on Restitution.
Assets and rights stated in Neutral Sub Balance Sheets of enterprises, from Article 4. of this Law, are transferred to bodies determined by Law on principles for purchase of apartments with tenancy rights.
III – OPENING BALANCE SHEETS OF BANKS
Article 21.
Opening Balance Sheets of banaks from Article 1. of this Law is prepared after finished Auditing of banks, according to Articles. 3, 4. and 5.of the Law on privatization of Banks.
Article 22.
Passive Sub-Balance Sheet of banks states:
1. liabilities as to ino-credits till 31. 3. 1992., based upon Law on foreign debts of the Federation BiH;
2. liabilities as to guaranties to ino banks till 31. 3. 1992., relating to Federation BiH;
3. liabilities as to citizens' foreign currency savings on 31. 3. 1992., decreased for payments till 31. 12.1997., according to Article 3.of the Law on determination and realization of citisens' claims in privatization process ("Official Gazette of the Federation BiH", No. 27/97);
4. non- owned assets, respectively not controlled by bank;
5. Balance of claims and liabilities till 31. 3. 1992., based upon relations towards legal and physical entities from the territory of ex-Rpublics of SFRJ and Republic Serpska;
6. balance of claims of banks of the Federation;
7. subscribed unpaid share capital; and
8. damage caused by war activities.
Article 23.
Value of liabilities, as to ino-credits and guarantees from Art.22. Parag.1.and 2.of this Law, are written off by banks on charge of claims, respectively based upon this.
Article 24.
Value of liabilities as to citisens' foreign currency savings from Art.22. Parag.3. of this Law, is booked off by bank on charge of claims based upon deposit of foreign currency savings at NBY, respectively based upon this.
Article 25.
Value of assets from Art. 22. Parag. 4. of this Law is booked off on charge of bank capital.
Article 26.
If value of liabilities from Art. 22. Parag. 5. of this Law is bigger than value of claims from the same Parag., equilibrium of Balance Sheet is achieved by enlargement of bank capital.
If value of claims from Art. 22. Parag. 5. of this Law is bigger than liabilities from the same Paragraph, equilibrium of Balance Sheet is achieved on charge of bank capital.
Article 27.
Provisions of Art. 25 of this Law are used to claims and liabilities from Art 22. Parag. 6. of this Law.
Article 28.
Value of subscribed unpaid share capital from Art. 22. Parag. 7. of this Law is booked off on charge of the state/public capital.
Article 29.
Value from Art.22. Parag. 8. of this Law in the amount of damage on constructed objects, eqipment and other tangible assets, stated on 31. 12. 1995. is booked off on charge of bank capital.
Article 30.
After activities undertaken from Art. 22., according to Art. 23. to 29. of this Law, level of remained banks' reimbursement, is to be defined, according to existing standards.
Investments from Parag.1. of this Art., together with a level of bank reimbursement lower than 50%, according to regulations of Agency for Banking in the Federation of Bosnia and Herzegovina (further: Agency), are written off on charge of bank capital unless bank assets are reserved from bank claims .
Article 31.
On a day when this Law comes to force, share capital of enterprise in state/public ownership of banks is written off, and ownership rights based upon this are written off temporary, until privatization or liquidation of bank, to Federal Ministry of Finance-Federal Miinistry of Finance (further: Ministry).
Article 32.
Neutral- Sub Balance Sheet of bank is prepared according to Art. 16. of this Law.
Article 33.
Active Sub-Balance Sheet states value of assets and rights and capital and liabilities, not included in Passive or Neutral Sub-Balance Sheet.
Article 34.
Active Sub-Balance Sheet is a base for privatization process of banks.
Article 35.
Assets, rights, capital and liabilities from Passive Sub-Balance Sheets of banks, after finished and approved Privatization Program, are transferred to Ministary, according to provisions of the Law on foreign Debt of the Federation BiH.
Assets stated in Neutral Sub Balance Sheet of banks, after approved Privatization Program, are transferred to bodies determined by the Law on purchase of apartments with existing tenancy rights and the Law on Restitution.
IV – PENALTY PROVISIONS
Article 36.
Penalty amounting from 5.000 to 10.000 KM will be paid for economic offense by enterprise or bank, unless Opening Balance Sheets of enterprise or bank are made, according to deadlines, determined by this Law.
For economic offense from Parag. 1. of this Art., responsible person will pay penalty, amounting from 500 to 1.000 KM.
Article 37.
Unless KM is circulated, penalties subscribed by this Law may be paid in DEM or equivalent currency used in payment transfer of the Federation, according to average rate, determined by authorized institutios, on a day of payment.
V – TRANSITIONAL AND FINAL PROVISIONS
Article 38.
Registration of changes into Land Books, according to Art. 3. Sect. 4. of this Law, will be executed by the Land Registry Court upon enterprise or bank' request and upon Decision on approval of registration into Court Registry for changes conducted in privatization procedure for enterprises and banks, according to the Law.
Article 39.
Agency will within 30 days, since this Law comes into force, bring Instruction on prreparation of Opening Balance Sheets of banks.
Article 40.
This Law comes into force by a day of publishing in "Official Gazette of the Federation BiH".
Chirman of House of Peoples
of
The Parliament of the Federation BiH
Mariofil Ljubić
Chiarman of House of Representatives
of
The Parliament of the Federation BiH
Enver Kreso
On basis of this Chapter IV Section B, Article 7. a) (IV) of the Constitution of the Federation of Bosnia and Herzegovina, announces:
ORDER ON PROCLAIMING THE LAW ON PRIVATIZATION OF BANKS
Law on privatization of banks is proclaimed, adopted by the Parliament of the Federation of Bosnia and Herzegovina on the Session of House of Representatives on January 22. 1998. and the Session of House of Peoples on February 26.1998.
No: 01-011-196/98
March, 24.1998.
Sarajevo
President of the Federation BiH
prof. dr Ejup Ganić.