The Agreement on the Succession of the former SFRY, signed in Vienna on 29 June 2001, came into force on 2 June 2004, upon ratification by all successor countries. Annex C, regulating the issue of division of financial assets and liabilities of the former SFRY, constitutes an integral part of this Agreement.

From the day the Agreement was signed until May 2005, the Committee for the Distribution of the Financial Assets and Liabilities of the former SFRY, consisting of representatives of all successor states, met sixteen times. The Committee has achieved significant results in terms of implementation of Annex C and the distribution of the assets of the former SRFY in spite of the fact that the Republic of Croatia had repeatedly refused to ratify the Agreement (which it eventually did in March 2004).

Following the motion to unblock foreign assets of the National Bank of the former SFRY frozen in accounts with foreign banks and in line with the initiative of the U.S. Administration, foreign assets amounting to around USD 237 million blocked in the accounts of American banks were distributed. Serbia and Montenegro obtained approximately USD 90 million, which, in compliance with the Succession Agreement, accounts for 38% of the entire amount of unblocked assets.

The effort to deal with the financial clearing issues between successor parties resulted in an agreement that regulates the non-convertible, clearing debt of the Russian Federation towards the former Yugoslav republics worth a total of 1.3 billion of clearing dollars. In this respect, on 17 September 2003, a multilateral Memorandum between the Government of the Russian Federation and the Respective Governments of the Successor Countries of the former SFRY on the Regulation of Mutual Financial Claims Arising from Trade Balance Settlement Issues between the former SFRY and the former USSR was signed.

In view of the fact that agreement on the distribution of monetary gold deposited with BIS, Basel was reached already in the course of negotiations, the representatives of successor countries have decided that the mechanism and methodology used in that distribution be applied to the remaining monetary gold owned by the former SFRY in line with the percentages specified in the Agreement (the SCG share being 38%).

In July 2005, representatives of successor states struck an agreement on the distribution of foreign assets in the amount of around USD 221 million frozen on accounts of the National Bank of the former SFRY with banks abroad (except in USA where these assets were unblocked and distributed in 2003). Distribution of the above assets will be effected by applying the percentages stipulated by the Succession Agreement (38% or around USD 84 million to Serbia and Montenegro).

Pursuant to the agreement on the settlement of obligations under outstanding guarantees issued by the Military Service of the National Bank of the former SFRY, potential obligations under those guarantees will be assumed by specific enterprises from the territory of all successor countries that were the end beneficiaries of assets under operations for which the guarantees were issued in the first place.

In February 2006, an agreement was reached on the distribution of shareholder capital of the former SFRY in Jubmes banka a.d. Beograd in line with the percentages stipulated by the Succession Agreement.

In its next meetings, the Committee will consider other issues pertaining to the distribution and financial assets and liabilities of the former SFRY, and in particular, the issue of determining the stock and distribution of credit and debit balances in the clearing and special accounts of the National Bank of the former SFRY (except USSR) and the distribution of debt of the former SFRY in respect of the Libyan loan.