Indecon Consulting

[Serbia] – Privatisation / Economic Reform

Assignment Name

Assistance to the Privatisation Agency of Serbia in Strengthening its Corporate Restructuring Centre




  • indecon (lead)
  • Icon-institute (member)


The overall objective of this project, financed by th EU CARDS Programme, was to assist Serbia in its structural adjustment and transition to a market-based economy through SOE “disposition” (privatisation, assets sales, spin-offs, liquidations). The specific objectives were to provide the Corporate Restructuring Centre of the Privatisation Agency with assistance aiming at CRC across its activities while dealing with each enterprise’s financial and legal restructuring issues and to support CRC marketing activities in the process of sales of assets/capital of the selected companies. Co-ordinate their activities with financial and legal advisors hired by CRC to prepare Restructuring Programs and assist the CRC management in day-to-day decision-making process.

Results achieved/expected

  • Support the Agency in obtaining over a period of 12 months approval of their Restructuring Program for enterprises under restructuring for which the preparation of Diagnostic Reports and Restructuring Programs is finalised or close to finalisation
  • Assist the Agency in achieving during the same period provisional settlements of debtor/ creditor relationships for selected enterprises for which the Privatisation Agency launched the Privatisation Initiative
  • Advise the CRC Director on improving the quality of CRC work and the overall effectiveness of the PA in conducting of the processes under its responsibility
  • Recommend to the Agency optimal sales procedure and method of privatisation for selected enterprises.

Type of Services Provided

  • Advise the CRC management on possible improvements of CRC functions, internal procedures, inter-departmental information and workflow and best management practices related to the restructuring/ privatisation activities in order to increase the quality level of CRC work and the overall effectiveness of the PA in conducting the process
  • Provide strategic advice on conclusions and recommendations for restructuring made by the teams of advisors
  • Improve the debt-settlement procedure which constitutes a particular stage of the process of privatisation through restructuring, and actively participate in the debt*settlement process on behalf of the PA upon request of CRC Director (i.e. amending or making proposals for debt reconciliation to majority creditors of the companies undergoing restructuring, and assisting the said companies in negotiation of such proposals, under supervision and with an approval of the CRC Director)
  • Assist PA in obtaining approval of their Restructuring Programs for selected enterprises under restructuring
  • Assist PA in achieving preliminary settlements of debtor/creditor issues for selected enterprises
  • Recommend to the Agency optimal sales procedure and method of privatisation in accordance with identified potential investors interest and market position of the company’s subject of privatisation, and review and finalize marketing documents and recommendations prepared by teams of advisors at the earlier stage.