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Multilateral compensations

Multilateral compensations

Multilateral compensation is a method of offsetting debts between business subjects in the Republic of Srpska based on mandatory and voluntary compensations, through the transfer of claims (cessions) and the auction of claims.

The Law on the Unique System of Multilateral Compensations and Cessions (hereinafter: the Law) was published on 19th March 2014 in the Official Gazette of the Republic of Srpska No. 20/14. The Law stipulates that all subjects – participants referred to in the Article 3 of the Law i.e. all legal persons and other persons who have got a gyro account – the main account in the bank are obliged to report all their indisputable financial obligations to the Unique System of Multilateral Compensations and Cessions pursuant to the Decision of the Republic of Srpska Government.

Pursuant to the Law and the Instruction on the Unique System of Multilateral Compensations and Cessions, we are authorised to register you as participants using a form MLK1, to access the system on your behalf, to report your obligations which you submit on a form MLK2 and to carry out other tasks related to multilateral compensations, multilateral cessions and selling of claims, helping you to reimburse your "irrecoverable" claims with a minimal fee, to speed up the payment and to enhance your liquidity.

More information about multilateral compensations may be found in the Instruction on Unique System of Multilateral Compensations.

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