Credit Co-operatives in Serbia: Retrospect and Prospect

This chapter takes an overview of credit co-operatives in Serbia in retrospect and prospect. It starts by examining the legal frameworks that have regulated their work, from the first Law on agricultural and handicraft co-operatives from 1898, through to the most recent Law on Banks from 2005. It moves on to consider different phases of development of credit co-operatives; before the second world war (when numbers peaked during the 1930s); during the post-war period (when the sector declined in the face of state socialism); and during the more recent period of transition (leading to the dissolution of credit co-operatives in 2005). To conclude the paper, the current situation (which places significant legal obstacles in the way of credit co-operatives) is then assessed and the possibility of the revitalization of credit co-operatives is considered. Special attention will be given to how the revitalization of credit co-operatives might play a role in the survival and effectiveness of other co-operative sectors in Serbia, particularly agriculture (since agricultural co-operatives account for 67 % of the total number of registered co-operatives in Serbia today). This analysis suggests that the situation is now critical, and an urgent review of the current position is required.