THE INSTITUTE OF ECONOMICS AND FINANCE (IEF) was founded in 1990 under the (former) Yugoslav Government's program "Restructuring of the Yugoslav Economy by introducing small and medium enterprises and enterpreneurship". The Institute's competence included work on implementing the restructuring program in Serbia. This organization was established under the name "SAM Consulting Center", with the goal of providing consultancy in the restructuring of large enterprises relying on the enterpreneurial concept.

After the disintegration of the former Yugoslavia, this organization was privatized and continued functioning as an independent profit-making organization oriented to market operations, being, at the same time, in search of its new physiognomy. This new physiognomy was finally shaped up in 1994, when THE INSTITUTE OF ECONOMICS AND FINANCE was given its present name and when new programs were established.

The IEF's professional experience has been built through work with large enterprises on strategic change programs, involving mostly ownership transformations - privatizations. The main Institute's skill areas include capital value appraisal, internal restructuring, and accounting, financial and legal consultancy. We have provided assistance and support to the strategic efforts of the managers of enterprises working in a wide variety of branches.

THE INSTITUTE OF ECONOMICS AND FINANCE is organized around the following major programs:
Consulting (privatization, restructuring, assessment and valuation, investment programs,
accounting systems)
Legislative and legal consulting (interpretation of laws and regulations, definition of specific legal
solutions tailored to specific needs, contractual consulting, examination and creation of internal
regulations to ensure proper legal functioning of enterprises and harmonization of all enterprise
segments)
Education (programs designed primarily to meet enterprise transformation requirements and to
provide the top management with new knowledge, concepts and methodologies needed for
enterprise restructuring purposes)
Publishing (only in the area of enterprise transformation and restructuring, with the aim of
familiarizing the management with the latest concepts and tools suitable for implementing such
changes as lead to better economic performance)
Information technology (production of software tools for solving all kinds of accountancy-related
problems - programs customized to our in-house requirements as well as to the needs of
our clients).

Each of these programs is, in its nature, a center in which the Institute's general strategy is realized, retaining, at the same time, its range of autonomous activity. All these programs are brought into harmony by a shared line of activities aimed at solving the problems of an enterprise in all its aspects: rational economic solutions, activities conforming to the law, possession of information and complete control over all activities.

The Institute has acquired its privatization experience in Serbia and Montenegro. Since 1990 we have participated in all privatization stages carried out according to different laws and regulations. This rich experience involves capital value appraisal and consulting services on the transformation of socially-owned capital into other forms of ownership.

IIEF has worked on many privatization projects aimed at providing the necessary conditions for privatization, which include: capital value appraisal, evaluation of privatization options, preparatory steps. The extent and depth of our involvement in these projects varied from one case to another. Some enterprises went no further than the appraisal stage, hesitating to undertake actual privatization efforts because of the general uncertainty climate prevailing in our country at the time and having learnt the lesson from previous privatizations, which had been not only questioned but annulled as well. In some other cases, however, more serious steps towards changing enterprise structure were taken. Initiated by our findings, managers decided to settle their obligations by undertaking appropriate transactions and privatizations.

We have worked on privatization programs with around 300 enterprises, the vast majority of them possessing a rather large value of capital. According to our appraisals, the value of capital of these enterprises amounts to over € 400 million, i.e., over YUD 24,000 million.

Restructuring is a program intended to change the economic, production-program, financial, organizational, market and general business configuration of an enterprise. The restructuring programs we offer focus on abandoning such orientation, programs or activities as do not lead to economic welfare or are not fully matched with the economic aspirations to attain a satisfactory yield, and introducing prospective orientation, programs and activities. Our practical experience involves both partial and more complex restructuring transactions, with emphasis laid on the financial aspect of restructuring.

In the area of restructuring we have worked with several larger firms. We provided assistance in structural change to: "Knjaz Miloš" in Arandjelovac, "BAS" (Bus Transport Enterprise) in Belgrade (2000-2001), "Svetlost" in Belgrade (1993-94), "Celarevo Brewery" in Celarevo (2000-2001), "Tehnika" in Belgrade (1995-96) where we divided this enterprise into 17 new enterprises, "PIK-Zemun" (food processing) in Zemun (in progress), "Nemetali" in Topola (2000-2001), "Vitamin" in Horgoš (in progress), "Grafopromet" in Cacak (in progress), "Lepenka" in Novi Kneževac (in progress).

From its first days the Institute has worked on regulating the legal position of enterprises. We have delivered consulting services in the following areas:
Normative regulation of the enterprise as a whole: by-laws, macroorganization solutions,
organization solutions for enterprise units
Establishment of new enterprises: completely new enterprises, enterprises formed by the divisions
of existing enterprises, enterprises formed for joint ventures
Accounting and financial regulations: general regulations on accountancy organization, special
regulations for some specific accounting operations matched with the actual activities of enterprises,
legal shaping of relations under special arrangements (joint ventures in the production, acquisitions
and sales, joint imports or exports)
Legal consulting in special types of contracts: long-term contracts, building contracts, joint venture
contracts, dealership, contracts, deposit contracts, contracts, agency contracts, etc.)
Legal consulting in privatization, acqisition and mergers, transformation of receivables into stakes
and shares.

Food processing ("PIK - Zemun" - Zemun, "Pivara Celarevo" - Celarevo, "Knjaz Miloš" - Arandelovac, "PIK Pešter" - Sjenica, "Hladnjaca" - Vršac; "Voda Vrnjci" - Vrnjacka Banja; "Heba" - Bujanovac, "Palanacki kiseljak" - Smederevska Palanka);

Public sector ("Srbija vode" - Beograd, JKP "Vodovod" - Niš, JKP "Vodovod" - Leskovac, JKP "Vodovod" - Gornji Milanovac, JKP "Vodovod i kanalizacija" - Zrenjanin; JKP "Vodovod" - Kraljevo, JKP "Vodovod i kanalizacija" - Indija, JKP "Tržnica" - Novi Sad; "Poslovni prostor" - Novi Beograd; "Poslovni prostor" - Zajecar, "Poslovni prostor" - Kruševac, "Poslovni prostor" - Mladenovac, "Urbanizam" - Novi Sad, JP "Direkcija za izgradnju grada Niša" - Niš, JP "Direkcija za izgradnju Užica" - Užice, JP "Direkcija za zemljište i izgradnju" - Lazarevac, JP "Direkcija za urbanizam i izgradnju" - Valjevo, JP "Direkcija za urbanizam i izgradnju" - Kruševac; JKP "6. oktobar" - Kikinda);

Building and construction ("IMS" Institut - Beograd, "Graditelj" - Beograd, "Graditelj" - Leskovac, "Zlatibor" - Užice, "Stari gad" - Cacak, "Mehanizacija" - Vladicin Han, "Gradevinarstvo" - Vlaicin Han, "Feldspat" - Bujanovac, "Nemetali" - Topola, "Jedinstvo" Smederevo),

Pharmaceuticals ("Hemofarm" - Vršac, "Jugoremedija" - Zrenjanin).

Metal processing ("FMP" - Beograd, "Petar Drapšin" - Novi Sad, "MIB" - Blace, "TIB" - Blace, "Fagar" - Podujevo, "Prodor" - Novi Sad).

Energy sector ("Rafinerija" - Beograd, "Gas Ruma" - Ruma).

Service sector ("Lutrija Srbije" - Beograd, "Lutrija Beograd" - Beograd, "BAS" - Beograd, "Pegaz" - Ivanjica, "Institut za istraživanje tržišta" - Beograd, "KFT" - Beograd, "INOS" - Beograd, "Grafopromet" - Cacak, "Radio Smederevo" - Smederevo, "Naš glas" - Smederevo, "Tehnika" - Beograd, "ZUP" - Beograd).
Trade ("Savremena administracija" - Beograd, "Partizan" - Cacak, "Jugokomerc" - Cacak, "Kolektiv" - Arandelovac, "Uzor" - Smederevska Palanka, "Jugopapir" - Beograd).

a. International Cooperation
Since foundation the Institute has been oriented to the cooperation with foreign institutions. At the very beginning the Institute established the cooperation with the World Bank and International Monetary Fund on enterpreneurship development programs. This cooperation involved consultancy on the programs formulated by the SFRY Government.
Foreign institutions with which we have established cooperation:
EPIC - Vienna, an investment fund for which we work on privatization programs.
Coordinator: Boba Ristic.
Pharos Group - Washington - a US investment fund for which we have performed research in two
enterprises and for which we will work in the future. Contact person: Clayton Lewis.
School for Advanced Urban Studies - University of Bristol, with which we worked in 1991-92 on
a project on the development of small businesses and new ownership forms in the Southeastern
Europe. Coordinator: Will Burtlet.
PIC GEA College - Ljubljana, with which we have cooperation on enterprise restructuring by applying
the enterpreneurial concept. Coordinator: Miroslav Glas.
Serbian Diaspora, with which we have established substantial relations, which represent a potential
source of investment into Serbian economy. We emphasize the fact that many Serbs living abroad
have contacted us, and we may use all these contacts in the process of auction privatization.

b. Cooperation with Serbian and Yugoslav Governmental Bodies
In delivering privatization consultancy services to our clients, we have established close and successful cooperation with our governmental bodies. We mention here the following institutions:
The Ministry of Economy & Finance of the Republic of Serbia, with which we have exchanged
experiences in taxation policy and its effects on the position of enterprises. Every year we organize
several professional meetings at which we provide our clients with advisory services.
This Ministry's experts participate in these meetings.
The Ministry of Economy & Privatization of the Republic of Serbia, for which we have made a large
number of capital valuations and privatization programs. These programs have been used by
enterprises in undertaking privatization measures. Over the past years we have held several
workshops and seminars in order to advise managers on the most effective approach to change.
The Ministry of Local Government of the Republic of Serbia, with which we have established
cooperation on matters relating to enterprises founded by the Republican and local government. For
many years we have maintained cooperation with public enterprises, for which we have realized a
large number of projects including capital valuation, enterprise organization and restructuring,
accounting organization, etc.
The Ministry of Sports of the Republic of Serbia, in cooperation with which we organize at least two
workshops on sports organization issues every year. The topics of our shared interest include: the
normative aspects of the work of sports organizations, the problems of accounting organization,
taxation, privatization and restructuring.
The Ministry of Science, Technologies and Development. This is many-year long cooperation on
the programs of publishing and research supported by this Ministry.
The National Bank of Yugoslavia. This cooperation proceeds in several directions. In 1995 we
performed an extensive research on the topic: Where is Yugoslavia's liquid capital? We have had an
exchange of attitudes and ideas on the problems of accounting polices and systems with the Control
Department of ZOP (Genereal Clearing House). For nearly ten years we have worked together o
the programs of payment operations. Intensive preparatory activities are now in progress for the
program of providing assistance to enterprises for the transfer of payment operations from the
competence of ZOP to business banks.