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With the judgement case no. C-555/21 the Court of Justice of the European Union (“CJEU”) answered a preliminary question addressed to it by the Austrian Supreme Court regarding the interpretation of Directive 2014/17 on credit agreements for consumers relating to residential immovable property.The Austrian Supreme Court addressed the request for the preliminary ruling in relation to ongoing court proceedings in which the local association for the protection of the interests of consumers (Ger. Verein für Konsumenteninformation) challenged the general condition used by UniCredit Bank Austria in its credit agreements secured by mortgages. With the disputed general term, the bank, in the case of early repayment of a credit agreement, proportionally reduces only the interest and costs of the credit which are linked to the duration of the credit and does not take into account the proportional reduction for those costs that do not depend on the duration of the agreement (e.g. credit processing costs).With respect to the addressed question whether Directive 2014/17 precludes the national legislation, which grants a consumer with a right to reduce the total cost of credit in the event of early repayment, namely reduction of interests and costs which depend on the duration of the agreement, the CJEU answered that the directive does not preclude such legislation. In case of early repayment, the consumer can therefore only request a reduction of interest and costs which depend on the duration of the agreement.The CJEU emphasized that the purpose of the right to reduce the total costs of the credit is to adjust the credit agreement according to the circumstances of an early repayment. This right, therefore, does not include the right to reduce the costs (i) that the consumer bears regardless of the duration of the agreement and (ii) of services that have already been completed at the time of the early repayment. Furthermore, the CJEU also emphasized that national courts must ensure that the costs borne by the consumer in the event of early repayment do not objectively represent a remuneration of the creditor for temporary use of the capital or payment for services which have not yet been performed.

With the judgment case no. C-555/21 the Court of Justice of the European Union (“CJEU”) answered a preliminary question addressed to it by the Austrian Supreme Court regarding the interpretation of Directive 2014/17 on credit agreements for consumers relating to residential immovable property.

Early repayment of a consumer mortgage loan and reduction of costs that do not depend on the duration of the credit agreement

Industries

Since the beginning of the war in Ukraine, 219,153 Russian citizens have immigrated to Serbia. In contrast, over the past year, more than four thousand Russian entrepreneurs and companies have been established in Serbia. In response to the newly emerging market circumstances, the Government of Serbia adopted the Decree on the criteria for awarding incentives to employers who employ foreign nationals in mid-June of last year. Under the conditions defined by the Regulation, for each employed foreigner, employers can obtain subsidies of 70% of the paid salary tax and 100% of the paid contributions for the Republic Fund for Pension and Disability Insurance.One of the primary criteria for awarding incentives is that the employer and the foreign citizen conclude an employment contract for an indefinite period, with a monthly salary of at least 300,000 dinars. However, this type of engagement is not following the Labor Law, which stipulates that an employer with a foreign citizen can only establish an employment relationship for a certain period for the validity of the work permit issued to the foreigner.Since the provisions of the Labor Law have a more vital legal force than the Regulation, the question of the practical scope of the Regulation itself is justified. The creator of the Regulation did not think to read the provisions of the Labor Law beforehand or at least consult with the relevant Ministry before the Regulation was adopted.In light of such circumstances, the Ministry of Labor issued an official opinion on this topic at the request of an employer who hired Russian citizens in February of this year. In its opinion, the Ministry notes that a foreigner can establish a working relationship for a fixed period but that a public discussion is underway on the amendments to the Law on the Employment of Foreigners, which will stipulate that the employer can conclude an employment contract with a foreigner for an indefinite period.Only after the entry into force of the changes mentioned above will employers be able to legally employ foreigners indefinitely and apply for the award of incentives provided for in the Regulation. In the meantime, may the creator of the Regulation think of passing a new regulation?This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.Contact:Kristina Pavlović, Associate <a href="mailto:kristina.pavlovic@sog.rs">kristina.pavlovic@sog.rs</a>

Since the beginning of the war in Ukraine, 219,153 Russian citizens have immigrated to Serbia. In contrast, over the past year, more than four thousand Russian entrepreneurs and companies have been established in Serbia. In response to the newly emerging market circumstances, the Government of Serbia adopted the Decree on the criteria for awarding incentives to employers who employ foreign nationals in mid-June of last year.

Employment of Foreign Nationals – Current Conflict of Regulations

Sheikh Rashid Bin Ahmed Al Maktoum, a member of Dubai’s ruling family, announced that he would offer cooperation opportunities for companies in Central and South Eastern Europe to participate in the national development program called ‘Operation 300 billion’.In March 2021, the UAE launched its 10-year comprehensive strategy to make industry the engine of a sustainable national economy. With this strategy, the Emirates plan to position itself as a global industrial hub by 2031 and to reach 300 billion dirhams (81.7 billion USD) of the gross national product from the current 133 billion dirhams (36.2 billion USD).The SOG Law Firm Will Screen Companies in Country and RegionAs the owner of RAM Investment Ltd. – DXB Holding, Sheikh Rashid Bin Ahmed Al Maktoum hired an international legal consortium of three leading law firms to screen and advise potential companies. That activity will be performed in Serbia and the region by the SOG Law Firm, which in recent years has worked on the most important investment projects in the Balkans, led by the founder Milan Samardžić. Among other things, SOG advised Etihad Airways on a strategic partnership with the Government of Serbia worth 200 million dollars and acquiring a 49% stake in the national airline (Air Serbia).In addition to SOG, two Hungarian law firms are part of the consortium. The law office of Dr. Boros Árpád András, which specializes in the energy, financial, and investment sectors of the Central and Eastern Europe region – leads the Consortium, and CERHA HEMPEL, whose executive partner is Dr. Polauf Tamás – known for its consulting solutions and decades of experience in international commercial transactions and corporate matters.Which Companies Can Apply?The newly established consortium will analyze the applications of innovative companies, primarily in industrial development, IT, transport, pharmaceutical and healthcare industries, which have the power to contribute to a modern, energy-efficient, and sustainable economy in the Emirate of Dubai.The UAE’s ‘Operation 300 Billion’ industrial strategy is open to various sectors. The focus is on information technology, artificial intelligence, and scientific and high-tech sector projects that include biotechnology, microbiology, renewable energy sources, meteorology, and water management. In addition, the strategy provides cooperation with companies from the petrochemical, metallurgical, and space industries. Then the rubber and plastic industries, machinery and equipment, electronic devices, pharmacy, and medical technology.For companies from the ex Yugoslavia region, the program offers exceptional business opportunities to benefit directly from the UAE’s industrial and technological expansion. Technology sector is experiencing significant growth and is one of the most promising. Our market is finally gaining attention on a regional and global scale and will potentially become dominant. Currently, Serbia is already a regional hub in innovation, especially regarding projects based on artificial intelligence. All these factors have contributed to the fact that the UAE has invited innovative companies from the domestic area.One of the examples of companies that have already managed to join the project from Dubai strategically is the leading artificial intelligence ecosystem/studio – <a href="https://www.merantix.com/">Studio Merantix AG</a>. The venture involves conceptualizing <a href="https://www.zawya.com/en/press-release/companies-news/hh-sheikh-rashid-bin-ahmed-al-maktoums-ram-investment-announces-ai-city-dubai-vision-vv3oi8dc">AI City</a>, a unique zone in Dubai that will implement pioneering artificial intelligence solutions. This project will become a global AI hub driven by a smart city infrastructure that connects research institutions and talents with leading domestic and international startups, corporations, and investors. It will house innovation labs, research institutes, and related companies – all together demonstrating the positive impact of artificial intelligence. Another company included in the work at the beginning of the year is the Hungarian <a href="https://genevation.eu/">Genevation Aircraft Kft</a>. This innovative company has started a unique project in the field of drone development.Participation in the UAE industrial strategy ‘Operation 300 billion’ not only provides companies with the opportunity to realize potential earnings and further establish themselves in the provision of services, but they can directly participate in a leading, innovative project that intends to push the boundaries of technology on a global scale.<blockquote>Companies interested in applying for the Dubai economic development program can inquire to office@sog.rs.</blockquote>

Sheikh Rashid Bin Ahmed Al Maktoum, a member of Dubai’s ruling family, announced that he would offer cooperation opportunities for companies in Central and South Eastern Europe to participate in the national development program called ‘Operation 300 billion’. In March 2021, the UAE launched its 10-year comprehensive strategy to make industry the engine of a sustainable national economy. With this strategy, the Emirates plan to position itself as a global industrial hub by 2031 and to reach 300 billion dirhams (81.7 billion USD) of the gross national product from the current 133 billion dirhams (36.2 billion USD).

Call for Innovative Companies to Participate in the Dubai Economic Development Program

Data Protection

The new Personal Data Protection Act (hereinafter: “ZVOP-2”) was adopted by the National Assembly on 15 December 2022, published in the Official Gazette of the Republic of Slovenia on 27 December 2022 and entered into force on 26 January 2023. Slovenia is thus the last EU Member State to adopt national legislation on personal data protection, thereby regulating some of the matters that the General Data Protection Regulation (the “GDPR”) left to the Member States.The ZVOP-2 introduces some important new provisions, the most significant of which is that the Information Commissioner will be able to impose fines that are prescribed in Article 83 in the GDPR. At the same time, ZVOP-2 also made it possible to impose fines on responsible persons at the companies and individuals, which is not provided for in the GDPR. It is also important to note that ZVOP-2 provides in transitional provisions that minor offence proceedings initiated before the Information Commissioner or the courts prior to ZVOP-2 entering into force shall be concluded in accordance with the provisions of ZVOP-1, unless the provisions of ZVOP-2 are more lenient for the perpetrator. Inspection proceedings initiated under ZVOP-1 shall continue in accordance with ZVOP-2.ZVOP-2 also regulates areas that are not covered by the GDPR or not covered in sufficient detail. ZVOP-2 thus introduces the following new features: <ul><li>in the area of video surveillance, the retention period for recordings has changed to a maximum of 1 year and the video surveillance notice will have to contain all the information provisioned in Article 13 of the GDPR (companies will be able to include on the notice a link to a website containing this information, instead of having it on the notice itself);</li><li>data processing logs, are to be kept in case of (i) extensive processing of special categories of personal data, (ii) regular and systematic monitoring of individuals, or (iii) where an impact assessment has identified a risk that can be effectively managed through the keeping of a processing log, or (iv) where the law so provides (the obligation to keep processing logs with the provisions of the ZVOP-2, shall be necessary within 2 years of its entry into force, i.e. by 26 January 2025);</li><li>the individual may seek judicial protection of his or her rights throughout the duration of the infringement, without first exercising rights under other provisions of the ZVOP-2 or resorting to other legal remedies and the decision is taken by an administrative court under the Administrative Dispute Act, where the individual may also include a claim for damages in his or her lawsuit;</li><li>after 20 years from the death of the individual, his or her data will no longer be protected as personal data;</li><li>the list of third countries referred to in Article 66 of ZVOP-1, i.e. the list of countries which the Information Commissioner has found to have an adequate level of protection of personal data or not, either fully or partially has been amended, i.e. it has been repealed with the entry into force of ZVOP-2, which means that another legal basis will have to be found for the export of personal data to countries that have been identified on this list as having an adequate level of protection of personal data;</li></ul> ZVOP-2 also introduces other changes, including in the areas of biometrics, linking filing systems, public registers and research purposes.At this point, it is important to stress that the provisions of GDPR are still applicable and used directly, and ZVOP-2 can be considered as an amendment to the GDPR, as it introduces additional requirements for compliance when processing personal data. Companies that have already been following the provisions under the GDPR and the guidance of the Information Commissioner will be able to adapt their business operations quite quickly and swiftly.

The new Personal Data Protection Act (hereinafter: “ZVOP-2”) was adopted by the National Assembly on 15 December 2022, published in the Official Gazette of the Republic of Slovenia on 27 December 2022 and entered into force on 26 January 2023. Slovenia is thus the last EU Member State to adopt national legislation on personal data protection, thereby regulating some of the matters that the General Data Protection Regulation (the “GDPR”) left to the Member States.

Personal Data Protection Act

One of the long-debated domestic themes is non-existence of retail NPL market in Serbia. Following the 2008 World Economic Crisis in Serbia, the country managed to regulate corporate NPL market, and to decrease NPL level from 20% to 3,19 %.However, retail NPL market remained a taboo. There are several reasons for this and the main one is that the general public fears that regulating retail NPL (“RNPL”) market would legalize debt slavery.Stil, the true is quite different. Instead of establishing RNPL market, the NPL companies mostly offer side services to the banks on debt collection, whereas the real effects of such services is de facto purchase of RNPL.Having this in mind, and that Serbian law completely lacks regulation of personal insolvency (as well as entrepreneur’s insolvency), this creates close to a debt slavery situation for many citizens that defaulted, and brings into jeopardy many more. When we take in consideration the current crisis, inflation, which includes sharp increase of interest rates, Serbian society could enter the dark ages.On the other hand, the necessity to establish RNPL market could be beneficial for all parties: (i) the banks could release large amount of reserves with the National Bank of Serbia (“NBS”) and invest them further, (ii) the state could improve its legislation through introducing a personal insolvency, which could be further used to improve social service offices, and (iii) the citizens in distress could be offered with a fresh start and assistance from the social services to overcome the crisis. Even the NPL companies would benefit, as they would be doing their business in much better environment for investing into RNPLs.Social service is in its decades long neglection period, and should be re-established as an institution that should also assist debtors to overcome their personal debt crisis via well-educated and skilled insolvency administrators (counsels).At the end, establishing solid system of personal insolvency on the one side and RNPL market on the other, could boost economic growth.This text was published for the Winter-Spring 2023 issue of the <a href="https://www.executive-global.com/">Executive Global Magazine</a>. It is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.Contact:Ivan Nikolić, Senior Associate ivan.nikolic@sog.rs

One of the long-debated domestic themes is non-existence of retail NPL market in Serbia. Following the 2008 World Economic Crisis in Serbia, the country managed to regulate corporate NPL market, and to decrease NPL level from 20% to 3,19 %. However, retail NPL market remained a taboo. There are several reasons for this and the main one is that the general public fears that regulating retail NPL (“RNPL”) market would legalize debt slavery.