Compensations

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Denationalization
Confiscation of property
Compensation to the victims of war and postwar aggression

Denationalization

Enforcement of decisions – delivery of bonds

The delivery of the bonds held by Slovenska odškodninska družba, d.d., (SOS2E) may be requested by the recipient of the bonds based on the final decision issued pursuant to the Denationalization Act, in accordance to which Slovenska odškodninska družba, d.d., shall act as an obligor for the delivery of the bonds. The act issued by the Ministry of the Environment and Spatial Planning for the implementation of rights based on the Housing Act shall also be deemed as a decision.

The recipient of the bonds is a person to whom Slovenska odškodninska družba, d.d., must deliver the bonds pursuant to the final decision. The legal successor of the beneficiary, who is the previous owner of the nationalized property, may also act as a recipient of the bonds if a request for the delivery of the bonds is accompanied by the decree on distribution together with the certificate of finality. The bonds, mutatis mutandis, are delivered based on the Housing Act.

In the request for the delivery of bonds, the recipient must state the following information:

name, surname and permanent address, UNIQUE IDENTIFICATION NUMBER (legal persons must state: the official title, headquarters, address, registration number),
number of a personal bank account (legal persons shall state a current account),
tax number.

The recipient must provide the request for the delivery of bonds together with the decision containing the certificate of finality, a copy of both sides of their personal identification card, and the relevant pages of their passport. It is desirable that the recipient also provides his/her telephone number.

Slovenska odškodninska družba, d.d., shall deliver the bonds to the recipient who has provided a complete request for delivery by entering them into the recipient’s account with Klirinško depotna družba, d.d., Ljubljana. Upon the delivery of the bonds, all the coupons that fell due prior to the delivery of the bonds shall be paid out to the recipient of the bonds. The bonds shall be delivered within 15 days following the receipt of the completed request and the recipient shall receive the applicable documents by registered post within the following 8 days at the latest.

THE BOND OF SLOVENSKA ODŠKODNINSKA DRUŽBA, d.d.

AMORTIZATION SCHEDULE (in DEM and EUR)

(amount of DEM100 or €51.13 denominations)

Coupon No.	Maturity date	Payment in DEM	Interest in DEM	Principle in DEM	Remaining debt in DEM	Payment in EUR	Interest in EUR	Principle in EUR	Remaining debt in EUR
1	15 January 1997	3.20	3.203	0.000	100.000	1.64	1.64	0.00	51.13
2	1 June 1997	2.21	2.211	0.000	100.000	1.13	1.13	0.00	51.13
3	1 December 1997	2.96	2.965	0.000	100.000	1.52	1.52	0.00	51.13
4	1 June 1998	2.95	2.948	0.000	100.000	1.51	1.51	0.00	51.13
5	1 December 1998	2.96	2.965	0.000	100.000	1.52	1.52	0.00	51.13
6	1 June 1999	2.95	2.948	0.000	100.000	1.51	1.51	0.00	51.13
7	1 December 1999	2.96	2.965	0.000	100.000	1.52	1.52	0.00	51.13
8	1 June 2000	2.96	2.958	0.000	100.000	1.51	1.51	0.00	51.13
9	1 December 2000	2.96	2.956	0.000	100.000	1.51	1.51	0.00	51.13
10	1 June 2001	2.95	2.947	0.000	100.000	1.51	1.51	0.00	51.13
11	1 December 2001	2.96	2.965	0.000	100.000	1.50	1.50	0.00	51.13
12	1 June 2002	2.95	2.948	0.000	100.000	1.49	1.49	0.00	51.13
13	1 December 2002	2.96	2.965	0.000	100.000	1.52	1.52	0.00	51.13
14	1 June 2003	2.95	2.948	0.000	100.000	1.51	1.51	0.00	51.13
15	1 December 2003	2.96	2.965	0.000	100.000	1.52	1.52	0.00	51.13
16	1 June 2004	2.96	2.958	0.000	100.000	1.51	1.51	0.00	51.13
17	1 December 2004	4.00	2.956	1.042	98.958	2.04	1.51	0.53	50.60
18	1 June 2005	4.23	2.916	1.313	97.645	2.16	1.49	0.67	49.93
19	1 December 2005	4.48	2.895	1.585	96.060	2.29	1.48	0.81	49.12
20	1 June 2006	4.69	2.832	1.857	94.203	2.40	1.45	0.95	48.17
21	1 December 2006	4.92	2.793	2.129	92.074	2.52	1.43	1.09	47.08
22	1 June 2007	5.11	2.714	2.400	89.674	2.62	1.39	1.23	45.85
23	1 December 2007	5.33	2.658	2.672	87.002	2.73	1.36	1.37	44.48
24	1 June 2008	5.52	2.573	2.944	84.058	2.83	1.32	1.51	42.97
25	1 December 2008	5.70	2.485	3.216	80.842	2.91	1.27	1.64	41.33
26	1 June 2009	5.87	2.382	3.487	77.355	3.00	1.22	1.78	39.55
27	1 December 2009	6.05	2.293	3.759	73.596	3.09	1.17	1.92	37.63
28	1 June 2010	6.20	2.170	4.031	69.565	3.17	1.11	2.06	35.57
29	1 December 2010	6.36	2.062	4.303	65.263	3.25	1.05	2.20	33.37
30	1 June 2011	6.50	1.924	4.574	60.688	3.32	0.98	2.34	31.03
31	1 December 2011	6.65	1.799	4.846	55.842	3.40	0.92	2.48	28.55
32	1 June 2012	6.77	1.652	5.118	50.725	3.46	0.84	2.62	25.93
33	1 December 2012	6.89	1.500	5.389	45.335	3.53	0.77	2.76	23.17
34	1 June 2013	7.00	1.336	5.661	39.674	3.57	0.68	2.89	20.28
35	1 December 2013	7.11	1.176	5.933	33.741	3.63	0.60	3.03	17.25
36	1 June 2014	7.20	0.995	6.205	27.536	3.68	0.51	3.17	14.08
37	1 December 2014	7.29	0.816	6.476	21.060	3.73	0.42	3.31	10.77
38	1 June 2015	7.37	0.621	6.748	14.312	3.77	0.32	3.45	7.32
39	1 December 2015	7.44	0.424	7.020	7.292	3.81	0.22	3.59	3.73
40	1 June 2016	7.51	0.216	7.292	0.000	3.84	0.11	3.73	0.00
Total coupons 1–40		193.00	93.000	100.000		98.68	47.55	51.13

Coupon payment

The person entitled to receive coupon payment is the person listed as the bondholder in the Central Registry System of Dematerialized Securities managed by Klirinško depotna družba, d.d., Ljubljana, on the third working day prior to the due date of the coupon.

Bond trading

The information regarding the value of the SOS2E bonds and their trading volume are published in the daily newspapers (e.g. Delo, Dnevnik, Večer) under the section “The Listing of the Ljubljana Stock Exchange, Free Market – Bonds” or on the Ljubljana Stock Exchange website.

Information regarding bond trading is available from stockbrokers (at banks and brokerages).

Transfer of bonds

The transfer of bonds from the trustee’s account to the account held by the successors shall be carried out in accordance with the rules of the operations of Klirinško depotna družba. Detailed information is available at the headquarters of Klirinško depotna družba, d.d., Ljubljana, Tivolska cesta 48.

Rules on the payment of compensations arising from denationalization

Denationalization Act (Official Gazette of the Republic of Slovenia/I, No. 27/91, Official Gazette of the Republic of Slovenia, No. 56/1992 – Decision of the Constitutional Court, 13/1993 – Decision of the Constitutional Court, 31/1993, 24/1995 Decision of the Constitutional Court, 29/1995 – ZPDF, 74/95 – ZZDZVP, 1/1997 – Decision of the Constitutional Court, 20/1997 – Decision of the Constitutional Court, 23/1997 – Decision of the Constitutional Court, 41/1997 – Order of the Constitutional Court, 49/1997 – ZZZIND, 87/1997, 13/1998 – Decision of the Constitutional Court, 65/1998, 67/1998 – Order of the Constitutional Court, 76/1998 – Decision of the Constitutional Court, 83/1998 – Order of the Constitutional Court, 60/1999 – Decision of the Constitutional Court, 66/2000 – ORZDen27, 66/2000, 11/2001 – Decision of the Constitutional Court, 54/2002 – Decision of the Constitutional Court, 54/2004 – ZDoh-1, 18/2005 – Decision of the Constitutional Court
the Slovene Compensation Fund Act (Official Gazette of the Republic of Slovenia, No. 7/1993, 48/94, 38/2010 – ZUKN)
Uredba o izdaji obveznic in o izvrševanju odločb, ki se glasijo na odškodnino, za katero je zavezanec Slovenski odškodninski sklad (Official Gazette of the Republic of Slovenia, No. 61/1996, 11/1999 – Decision of the Constitutional Court and 16/1999 – Corrigendum to the Decision of the Constitutional Court)
Decision on the second issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 38/1996)
Decision on the third issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 10/2000)
Decision on the fourth issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 76/2001)
Decision on the fifth issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 67/2002)
Decision on the sixth issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 42/2005)
Decision on the seventh issuing of bonds of the Slovenian Compensation Company (Official Gazette of the Republic of Slovenia, No. 80/2007)

Notification about the taxation of the interest arising from the SOS2E bonds for the respective bondholders

It is necessary to clarify that according to Article 27 of the ZDoh-2 compensation granted pursuant to the Denationalization Act, the Enforcement of Criminal Sanctions Act and the Act for the Payment of Compensation to the Victims of War and Postwar Aggression shall not be subject to taxation. In view of the above, the compensation granted to individual beneficiaries by a decision shall not be subject to taxation and taxation shall apply only to income arising from the compensation – SOS2E bonds.

Pursuant to the Tax Procedure Act (Official Gazette of the Republic of Slovenia, No. 117/2006 and others, hereinafter: ZDavP-2), Slovenska odškodninska družba, d.d., must notify the tax authorities and the taxpayer (person liable to receive interest arising from bonds) of the information for tax collection purposes.

The Act Amending the Personal Income Tax Act (Official Gazette of the Republic of Slovenia, No. 115/2005) that entered into force on 1 January 2006 brought changes to the taxation of interest from SOS2E bonds. Pursuant to Article 71, Item 6 of ZDoh-1, only 50% of the value of the interest arising from bonds granted to the beneficiary as a compensation in accordance to the Denationalization Act shall be subjected to taxation. If under the aforementioned act the beneficiary is dead or pronounced dead prior to the date on which the decision on denationalization becomes final, the role of the beneficiary is assumed by his/her successors, who were presented with the bonds by Slovenski odškodninski sklad or Slovenska odškodninska družba, d.d., based on a final decree of distribution. It is necessary to stress that the aforementioned adjustment has a retrospective effect, namely as of 1 January 2005 (Article 61, Paragraph 1 of the preliminary and final provisions of the Act Amending the Personal Income Tax Act).

On 30 December 2005 and 18 February 2008, the Tax Administration of the Republic of Slovenia published an explanation entitled Taxation of the interest arising from the bonds (SOS2E) granted as a compensation pursuant to the act regulating denationalization and the payment of tax on interest arising from the SOS2E bonds accumulated in 2008, providing a detailed explanation of the provisions under ZDoh-1 and ZDoh-2. Based on the explanation, it is clear that:

the beneficiary that acquired the bonds as a compensation pursuant to the Denationalization Act shall be liable to pay tax only for 50% of the value of the interest arising from the bonds
if under the aforementioned act the beneficiary is dead or pronounced dead prior to the date on which the decision on denationalization becomes final, the role of the beneficiary is assumed by his/her successors, who were presented with the bonds by Slovenski odškodninski sklad or Slovenska odškodninska družba based on a final decree of distribution, thereby relieving the successors from paying 50% of the value of the interest arising from the aforementioned bonds;
if the beneficiary who was granted the bonds as compensation pursuant to the Denationalization Act becomes deceased following the final decision on the denationalization, and the aforementioned bonds are transferred to his/her successors based on a final decree of distribution, the successors are not entitled to the aforementioned exemption;
the beneficiary who purchased the bonds on the free market is also not entitled to exemption from payment in the amount of 50% of the value of the interest arising from the SOS2E bonds;
Article 132, Paragraph 1 of the Personal Income Tax Act – ZDoh-2 (Official Gazette of the Republic of Slovenia, No. 117/06, 10/2008) valid as of 1 January 2007 states that income tax from capital income, which also includes interest, is calculated and paid based on the tax basis established pursuant to the provisions under Section III.6 of this Act, which amounts to 20% and shall be deemed as final tax;
pursuant to Article 2 of ZDoh-2 the tax is established pursuant to the provisions of the Act valid on 1 January in the year that the tax is being imposed on, if not otherwise stipulated by law.

Information

For more information concerning the enforcement of the decision and the delivery of the bonds contact us via our free telephone number: +386 (0)80 1779 every Monday and Tuesday from 10am to 12am.

Confiscation of property

Compensation for confiscated property pursuant to the abrogation of the penalty of confiscation of property

The Republic of Slovenia issued RS21 bonds for the payment of compensation for confiscated property pursuant to the abrogation of the penalty of confiscation of property. Slovenska odškodninska družba, d.d., carries out activities related to the delivery of bonds, payment of the principal, and calculation and payment of the interest.

Enforcement of decisions – delivery of bonds

The beneficiary may request the delivery of the RS21 bonds based on a final decision defining the amount of compensation for the confiscated property. The recipient is at the same time the legal successor of this person and shall identify himself/herself with the final decree of distribution or any other applicable legal title.

Slovenska odškodninska družba, d.d., shall deliver the RS21 bonds to the beneficiary upon his/her request, which must include the following information:

the beneficiary’s name and surname, permanent address, Unique Identification Number (legal persons shall state the company, headquarters and registration number),
the recipient’s tax number,
the recipient’s bank account number and bank that manages the account.

The beneficiary must provide the request for delivery of bonds together with the decision containing the certificate of finality, a copy of both sides of their personal identification card, and the second and third page of their passport. If the recipient is a legal person, they must provide an extract from the Court Registry together with the decision and a valid legal title for acquisition of rights arising from the decision.

Slovenska odškodninska družba, d.d., shall deliver the RS21 bonds to the recipient who provided a complete request for delivery by entering them into the recipient’s account with Klirinško depotna družba, d.d., Ljubljana. Bonds shall be delivered within 15 days following the receipt of the completed request, whereby the recipient shall receive an applicable notification about the delivery of the bonds by registered post within 8 days following the date of the delivery of the bonds at the latest.

Basic information about the RS21 bond

	RS21
Issuer	Republic of Slovenia
Denominations	€41.73
Remuneration commencement date	1 February 2001
Maturity date	1 March 2015
Annual interest rate	TOM + 1%
Method of interest payment	Annually: 1 March

The interest on the bonds shall run as of the issuance date (1 February 2001), whereby interest calculated based on the first annual instalment payment are added to the bond’s nominal value.

The Republic of Slovenia shall fulfil its obligation regarding the payment of the bond’s principle within fifteen annual instalments with the due date on 1 March of the current year.
The guarantee for payment of the principle and the interest shall be provided by the Republic of Slovenia.
For more information about the bond, visit the website of the Ministry of Finance.

Payment of bond-related obligations

The Republic of Slovenia shall fulfil the RS21 bond-related financial obligations towards the statutory bondholder on the date which is three working days prior to the due date of the obligation. The obligations of the Republic of Slovenia shall be deemed as fulfilled if they are fulfilled by Slovenska odškodninska družba, d.d., on its behalf or by any other person acting as its paying agent.

If the Republic of Slovenia fails to fulfil any of the financial obligations due to insufficiency of the beneficiary data stated in the Central Register managed by Klirinško depotna družba for the enforcement of payment pursuant to the applicable regulations, the beneficiary is entitled to submit a written claim for payment, which must be addressed to the Ministry of Finance.

Bond trading

The information regarding the value of the RS21 bonds and their trading volume is published in the daily newspapers (e.g. Delo, Dnevnik, Večer) under the section “The Listing of the Ljubljana Stock Exchange, Stock Exchange Listing – Bonds” or on the Ljubljana Stock Exchange website.

Information regarding bond trading is available from stockbrokers (at banks and brokerages).

The rules regulating the payment of compensation for confiscated property pursuant to the abrogation of the penalty of confiscation of property are:

the Act Regulating the Issuing of Bonds in Compensation for Confiscated Property pursuant to the Abrogation of the Penalty of Confiscation of Property (Official Gazette of the Republic of Slovenia, No. 49/1999);
the Decree on the issuing of bonds as compensation due to the Abrogation of the Penalty of the Confiscation of Property (Official Gazette of the Republic of Slovenia, No. 84/1999).

Notification about the taxation of the interest arising from the RS21 bonds for the respective bondholders

It is necessary to clarify that according to Article 27 of the ZDoh-2 compensation granted pursuant to the Denationalization Act, the Enforcement of Criminal Sanctions Act and the Act for the Payment of Compensation to the Victims of War and Postwar Aggression shall not be subject to taxation. In view of the above, the compensation granted to individual beneficiaries by a decision shall not be subject to taxation; whereby, taxation shall apply only to income arising from the compensation – RS21 bonds.

Pursuant to Tax Procedure Act (Official Gazette of the Republic of Slovenia, No. 117/2006 and others, hereinafter: ZDavP-2), Slovenska odškodninska družba, d.d., must notify the tax authorities and the taxpayer (person liable to receive interest arising from bonds) with the information for tax collection purposes.

Compensation to the victims of war and postwar aggression

Pursuant to official authorization, Slovenska odškodninska družba, d.d., shall manage the procedure of payment to the victims of war and postwar aggression and shall carry out administrative and technical activities related to the payment of compensation.

Slovenska odškodninska družba, d.d., shall receive the data on the beneficiaries liable to compensation and their rights from the competent authorities: administrative units, the Commission for the implementation of the Redressing of Injustices Act, and the Ministry of Defence.

Based on the acquired data, officially certified data and guidelines, Slovenska odškodninska družba, d.d., shall calculate the amount of the compensation and issue a decision accordingly.

Enforcement of decisions – payment of the compensation in cash and delivery of bonds

The granted compensation shall be paid out to the beneficiary based on a final decision regarding the amount of compensation and completed claim provided by the beneficiary.
Together with the decision on the amount of compensation, beneficiaries are provided with a claim for compensation payment, which they must submit together with photocopies of the listed documents to Slovenska odškodninska družba, d.d. The aforementioned claim must include the following information:

the beneficiary’s name and surname, permanent address, Unique Identification Number, or the date of birth if the UIN is not available,
tax number,
bank account number and bank that manages the account, plus the SWIFT CODE, IBAN or BIC for foreign transfers.

Based on a final decision regarding the amount of compensation and completed claim provided by the beneficiary, Slovenska odškodninska družba, d.d., shall pay the beneficiary compensation in the manner stipulated by the law.

The Act Amending the Payment of Compensation to the Victims of War and Postwar Aggression Act came into effect on 7 April 2009. Pursuant to Article 4 of this Act, compensation shall be paid out in cash, and not in instalments or bonds.

Prior to the amendment of the Act, compensations according to the decisions issued prior to 7 April 2009 were paid out in cash up to the amount of €1,251.88, whereas the remaining amount (in total up to €8,345.85) was paid out in RS39 bonds. Slovenska odškodninska družba, d.d., is still enforcing this decision.

The beneficiary’s successors

Upon the death of the person who was granted the right to compensation pursuant to the Redressing of Injustices Act and the Zakon o posebnih pravicah žrtev v vojni za Slovenijo 1991 act, the beneficiary’s successors shall be entitled to compensation according to the rules of distribution.
Successors of the deceased beneficiaries shall receive compensation based on the final decree of distribution that shall also include the Act for the Payment of Compensation to the Victims of War and Postwar Aggression.

For each successor entitled to the appropriate portion of compensation according to the final decree of distribution, the following must be submitted:

a photocopy of their personal identification document (both sides of their personal identity card or the second and third page of their passport),
a photocopy of their bank account number; plus the SWIFT CODE, IBAN or BIC for foreign transfers,
tax number.

Payment of bond-related obligations

Slovenska odškodninska družba, d.d., shall fulfil its bond-related financial obligations towards the statutory bondholder on the date which is three working days prior to the due date of such.

If Slovenska odškodninska družba, d.d., fails to fulfil its bond-related obligations on the due date, because of incomplete information related to the account or beneficiary in the Central Register managed by Klirinško depotna družba, d.d., Slovenska odškodninska družba, d.d., shall invite the beneficiary to complete the information. The guarantee for payment of the principle and the interest shall be provided by the Republic of Slovenia.

For more information about the bond, visit the website of the Ministry of Finance.

Rules on the payment of compensation to the victims of war and postwar aggression:

the Act for the Payment of Compensation to the Victims of War and Postwar Aggression (Official Gazette of the Republic of Slovenia, No. 18/2001, 111/2001, 67/2002, 54/2004 and 27/2009);
the Decree on issuing bonds for the payment of compensation to the victims of war and post-war aggression and implementation of decisions concerning the determination of compensation (Official Gazette of the Republic, No. 60/2001, 85/2001, 102/2001 and 30/2002)*,
Instruction on the method, form and due dates for communicating the data on the persons entitled to compensation under the War Damage Compensation Fund Act (Official Gazette of the Republic of Slovenia, no. 70/2001)*.

*The rules shall apply to the payment of compensation based on the decision issued up to 7 April 2009.

Notification about the taxation of the interest arising from the RS39 bonds for the respective bondholders

As defined under Article 80, Paragraph 1, Item 1 of the Personal Income Tax Act (Official Gazette of the Republic of Slovenia, No. 117/2006 and others, hereinafter: Zdoh-2), the capital income shall also include interest. Pursuant to Article 81, Paragraph 1 of ZDoh-2, interest also includes interest from debt securities. In view of the above, the compensation granted to individual beneficiaries by a decision shall not be subject to taxation and taxation shall apply only to income arising from the compensation – RS39 bonds.

Information

For more information concerning the payment of compensation to the victims of war and postwar aggression contact us via our free telephone number: +386 (0)80 1779 every Monday and Tuesday from 10am to 12am.

Slovenska Odškodninska Družba

Compensations