Monetary Liabilities Research Articles

To divide or not to divide: Innovations on liability for reparations in the Ntaganda case

Abstract In 2021, the Ntaganda case introduced a new approach to evaluating the monetary liability for reparations in the International Criminal Court (ICC) by explicitly recognizing joint and several liability and centring the determination of the quantum of reparations on the harm suffered by the victims and the costs to repair it. As suggested by the Ntaganda Trial Chamber, these two innovations promote a stronger separation between the reparation process and the criminal trial, in order to consolidate a compensatory and victim-centred approach to reparations awarded by the ICC. This article critically appraises the innovations in Ntaganda through the lens of Article 21 of the Rome Statute, focussing on three elements: (i) the evolving jurisprudence on monetary liability in the ICC prior to the Ntaganda case; (ii) the case law on reparations of hybrid criminal courts; and (iii) the notion of general principles of law derived from the national legal systems of the world, in the sense of Article 21(1)(c) of the Statute. The article argues that, despite its victim friendly veneer, the approach introduced in Ntaganda should not be taken for granted. Besides the fact that multiple important aspects and ramifications of this approach remain unaddressed, those two innovations may have serious implications for the victims, the convicted persons, and the ICC’s reparations process as a whole.

УПРАВЛІННЯ ПОДАТКОВИМИ РИЗИКАМИ ПІДПРИЄМСТВА ЧЕРЕЗ ІНСТРУМЕНТ СТРАХУВАННЯ

The introduction of the newest tax risk management approaches has become more and more critical for Ukrainian enterprises. This paper analyzes and summarizes international experience in tax risk management and defines trends in this area. The author presents several recommendations for improving fiscal relations using an insurance coverage mechanism. The article also emphasizes the changes in tax relations determined by the development of information technology, as well as new opportunities and challenges associated with these processes. The methods used worldwide to manage these processes are analyzed in order not only to mitigate tax risks but also to implement necessary changes required to make tax function more efficient in a company. Given the complexity of tax regulations and the development of new instruments for managing tax risks, the author proposes to consider and put into practice the US experience, where, as a way of providing transparency and consistency in accounting for income tax liabilities, Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48) was adopted in 2006 by the FASB. Practical foreign experience of insurance coverage for tax risks, uncertain tax positions, and the potential development of such insurance in Ukraine are outlined. It is noted that the essence of tax risk insurance is to cover possible financial losses incurred by a business entity as a result of changes in tax legislation or an unformed approach of court practice. It is determined that there are certain inconsistencies in the sectoral legislation regarding the absence of rules governing tax risk insurance. At present, the national legislation does not define tax risk insurance as an independent class of insurance (or its component), which reduces its effectiveness. The development of tax risk insurance in Ukraine could become an effective tool to help minimize business risks of monetary liabilities to the budget. The authors argue that there is a need for high-quality transformation in the transparency of business, accounting, financial, and tax reporting within relationships with tax authorities. In addition, it is determined how the implementation of the Standard Audit File (SAF-T) could affect the taxpayer's cooperation with the government and insurers in assessing tax risks.

Penal (financial) sanctions for non-payment of agreed amounts of tax obligations

The relevance of the research of applying penal (financial) sanctions for non-payment of agreed amounts of tax obligations has been determined by multifaceted and controversial relations that arise regarding tax and fee collection, competence of controlling bodies, powers and duties of their officials, responsibility for violations of tax legislation. The purpose of the article is to reveal the features of applying penal (financial) sanctions for non-payment of agreed amounts of tax obligations. Contemporary general philosophical, general scientific and specific scientific methods have been used. The procedure for bringing the payer to financial responsibility and fintech model when applying fines have been addressed. It has been adduced that the date from which the period during which a fine could be imposed is calculated is the date of payment of the agreed amount of the tax liability, and not the date on which the statutory payment period for the agreed monetary liability expires. Specificity of the date from which this period is calculated, has been dealt with in terms of the tax authority conducting a chamber audit on the timeliness of payment of the agreed tax (monetary) obligation, and the application of fines for late payment by the taxpayer of the agreed monetary liability is the date of actual payment of the agreed amount of the tax liability. The practical value of the results is that they could be used to establish specific temporal limits for calculating the period during which a chamber check could be conducted on the timeliness for paying the agreed monetary obligations.

Features of monetary obligations in the integrated taxpayer card during administrative or judicial appeals

The article is devoted to the analysis of current legal and theoretical features of the reflection of monetary obligations in the integrated card of the taxpayer during administrative or judicial appeals.The tax authorities of Ukraine often violate the rights and legitimate interests of taxpayers in the exercise of their powers, including the conduct of tax audits and fixing its results in the relevant documentation. Tax audit is a special type of state financial control provided by the tax authorities of Ukraine. There are different types of tax audits and have their own characteristics of the researching the timeliness of financial reporting and payment of taxes and fees in full by the taxpayer. According to the results of the tax audit, the information should be included in the tax documentation of the taxpayer, but recently they enter such information with errors and sometimes violating the deadlines for entering such information. The display of inaccurate information in the integrated cards of taxpayers on the presence or absence of tax debt is the subject of a significant number of disputes with the authorities. Improving the mechanism for including operational information on the accrual of monetary liabilities in the tax documentation of taxpayers is an important issue that needs due attention, as it concerns the possible violation of their legal rights and interests. The process of administrative and judicial appeal of the amount of monetary liabilities determined by the results of the tax audit has its own features that must be considered by the tax authorities when displaying tax information in the integrated cards of taxpayers.Therefore, we investigated various methodological aspects of entering information about the taxpayer’s monetary obligations based on the results of the tax audit into the relevant information system, which provides the formation of integrated taxpayer cards. The peculiarities of the mechanism of interaction of subjects of state power are considered. The process of administrative and judicial appeal of certain amounts of monetary obligations of the taxpayer is analyzed. The peculiarities of the mechanism of providing information by judicial authorities to the tax authorities in order to include operational information on the accrual of monetary liabilities in the tax documentation of taxpayers are studied. A scientific analysis of some theoretical issues, the solution of which is related to the improvement of the legislation of Ukraine governing this area of relations. Key words: tax relations, taxes, judicial appeal, executive branch, administrative appeal.

The interdependence of Fiscal and Monetary Policies in an Emerging economy

This article's main goal is to evaluate the degree of fiscal dominance in Uruguay in 1999-2019 to improve the understanding of economic policy for theoretical reasons and applied needs related to good practices and accountability. Two strategies are followed: one, to quantify the fraction of fiscal expenditures that are financed by monetary liabilities and, the other one, to analyze the effects of fiscal deficit on the price level and inflation because inflationary financing may prevent the central bank from reaching its inflation target. Both situations may subordinate the monetary policy to the fiscal policy, signaling fiscal dominance. In addition, through the analysis performed to assess the degree of fiscal dominance, it is possible to detect the main determining factors of the Uruguayan price level (inflation) formation during the last two decades. So far, preliminary results suggest that inflation is not exclusively a monetary phenomenon and point to some inflationary financing with a mild degree of fiscal dominance.

Second Thoughts About Central Bank Digital Currencies

Sustained decline in central banks’ monetary liabilities (reserves and currency in circulation), which the emergency of cryptocurrencies may have hastened, has been enabled by technological innovations that over time have allowed financial institutions and their customers to execute transactions and settle their debts without resorting to central bank currency. Policymakers are concerned about their ability to guarantee public’s access to government-backed currency. This has implications for central banks’ balance sheet and income position, which central bank digital currency might reconstitute. But the introduction of central bank digital currency (CBDC) comes with its own risks and could be disruptive for financial markets. We believe that retaining the option to have access to government-guaranteed currency is of utmost importance, despite the sporadic demand for physical currency in the modern society, but it could be addressed within existing institutional structures without the introduction of CBDC. However, policy authorities are right in seeking oversight and regulation for cryptocurrencies to address the destabilizing potential of cryptocurrencies for financial markets, and they should continue modernizing payment infrastructures to bring retail settlement systems at par with cryptocurrencies in terms of settlement speed but without associated liquidity and credit risks. These steps would preserve the status quo and allow private sector to continue innovating while limiting central banks’ footprint in the financial markets.

פטור מחבות בגין הפרת חובת זהירות <br> Exculpatory Charter Provisions

תקציר בעברית: חוק החברות קובע כי חברה רשאית לפטור, מראש, נושא משרה בה מאחריותו בשל נזק עקב הפרת חובת הזהירות כלפיה, אם נקבעה לכך הוראה בתקנון החברה. בשנים הראשונות לאחר חקיקת חוק החברות לא נעשה שימוש רב בכלי הפטור. אולם, רשימה זו מצביעה על שינוי דרמטי בעמדת בעלי המניות בישראל, אשר הביא בשנים האחרונות לאימוץ נרחב של הגנת הפטור בידי חברות ציבוריות. עיגון הפטור בתקנון החברה מבטא את עמדת בעלי המניות לפיה בתי המשפט אינם זירה נאותה להתמודדות עם כשלים ניהוליים ואת העדפתם שלא לשאת בעלויות ביטוח אחריות נושאי המשרה בגין כשלים אלו. אולם, הניסיון שנצבר בהפעלת הגנת הפטור בדין הישראלי מעלה ספקות ביכולתה של הגנה זו להגשים את התכלית העומדת ביסודה. ברשימה זו נצביע על קשיים אלו ועל הדרך לפתרונם. במישור הדין המהותי, אנו טוענים שיש לפרש בצמצום את חריג הפזיזות לפטור, כך שיחול רק כאשר יש אשם סובייקטיבי של נושאי המשרה. בהעדר אשם שכזה, הגנת הפטור חלה גם על כשלים תהליכיים חמורים שנפלו בקבלת ההחלטות בידי נושאי משרה, והיא מגנה על נושאי משרה גם במקרים של כשל בפיקוח על ציות החברה לחוק. במישור הדיוני, הגשמת רצונם של בעלי המניות מחייבת סילוק מוקדם של תביעות נגד נושאי משרה להם עומדת הגנת הפטור ונקיטת גישה זהירה באישור פשרות בחברות שבהן יש פטור מאחריות לנושאי משרה. בכל הנוגע לשינוי חקיקה, אנו מציעים לבטל את הזיקה הישירה שבין הסייגים לפטור לבין ביטוח האחריות של נושאי המשרה, לפשט את הליך הענקת הפטור, ולהבהיר כי הפטור חל בכל מקרה שאינו כולל הפרה מודעת של חובות נושאי המשרה. English Abstract: The Israeli Companies Law allows companies to exculpate directors and officers from monetary liability for breaching the duty of care. In the years after the enactment of the Companies Law, shareholders in Israel did not support companies’ attempts to adopt exculpatory charter provisions. In this article, however, we document a dramatic change that has recently led to widespread adoption of exculpatory charter provisions. This development, we argue, may be explained by the rise in derivative lawsuits following the establishment of an expert corporate law court. We explore the obstacles that might prevent exculpatory charter provisions from achieving their goal, including the link created by statute between non-exculpated claims and mandatory limitations on D&O insurance and the for tools that would allow courts to quickly dismiss exculpated claims.

ПРІОРИТЕТИ ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ПОДАТКОВОГО КОНТРОЛЮ В УКРАЇНІ

The article reveals the essence of tax control and establishes the relationship between taxpayers and regulatory authorities. The purpose of the article is to substantiate the theoretical provisions and develop practical recommendations for the development of tax control in Ukraine. The methodological basis is a set of general scientific principles, methods of scientific knowledge, methods and techniques used in the research process. The peculiarities of the formation of tax relations were revealed and the interest of both parties in the conflict-free existence of economic interests was established. Also considered tax control from the standpoint of the source of tax risks for each of the subjects of taxation, considered the features of the response of taxpayers to tax risks in the event of changes in tax control procedures. The analysis of the effectiveness and efficiency of tax inspections indicates that the receipt of accrued and agreed with taxpayers monetary liabilities is not complete, which negatively affects the amount of revenues to the revenue side of the budget and overspent resources of the state and taxpayers for such controls. The control and revision measures were carried out, which were carried out and aimed at identifying and working out the facts of violation of the current legislation related to legalization (laundering) of proceeds from crime and other offenses. As a result of the study, it was noted that the effective organization of tax control should help reduce the tax risks of the state and taxpayers, and, accordingly, by reducing tax offenses, and increase tax revenues to the state budget. The practical significance of the obtained results lies in the possibility of implementing conclusions and proposals on theoretical, organizational and methodological support for the development of tax control through the use of new digital technologies and other tools for monitoring the completeness of tax liability of taxpayers. The use of the results is possible in determining the further directions of development of tax control in the context of digitalization, in the development of methodological support for control measures during the implementation of all forms of tax control.

Независимая гарантия и поручительство: о целесообразности создания единого личного способа обеспечения обязательства в российском гражданском праве

The article is devoted to the advisability of the simultaneous existence of two named personal means of securing obligations — a suretyship and an independent guarantee. Suretyship is a traditional guaranteeing obligation that has arisen in a modern form in the law of Ancient Rome and has been developing for two millennia. In turn, an independent guarantee is the result of the evolution of an artificially created, or rather, copied from foreign banking practice, to solve the problems of the command economy by the Soviet civil law institute of guarantee. As a result of the permanent reform of domestic law of obligations, the introduction of pro-creditor approaches in the practice of resolving disputes related to securing obligations, the borders between the suretyship and an independent guarantee are washed away. Both of these means today assume a third party’s monetary liability in case of a debtor’s malfunction in a secured obligation (suretyship is de jure, and an independent guarantee is de facto). There are obvious tendencies to give the qualities of accessory independence of an independent guarantee and, on the contrary, to the formation of signs of the abstractness of suretyship. In this regard, the author makes an assumption about the further development of personal methods of securing obligations in Russian civil law.

Comment Letter - Office of the Comptroller of the Currency: Warning of the Dangers Posed by the Shadow Payment System and Shadow Digital Money

This comment letter was submitted in response to the Office of the Comptroller of the Currency (OCC) advance notice of proposed rule-making regarding the digital activities of National Banks and Savings Associations. For the reasons set out in this letter, we believe that the OCC’s proposed approach to regulating new financial technologies, institutions, and platforms is fundamentally flawed. Rather than focus on relaxing the regulatory framework governing banks, we believe that the OCC should consider how to strengthen the legal regime governing an emerging contingent of non-bank financial institutions that now compete with banks in the realm of money and payments. This comment letter describes the business models of these new institutions, the antiquated and inadequate legal regimes that currently govern them, and the serious and growing risks they pose. This letter suggests modest and straightforward reforms that the OCC should recommend to Congress that would require these firms to back their monetary liabilities 1:1 with bank deposits. These reforms would harmonize state and federal law, prevent a weakening of the prudential safeguards that ensure the safety and soundness of money institutions, and yet still allow both banks and non-bank payment platforms to offer innovative services. These reforms would also be superior to alternative approaches such as a federal payments charter, which would likely prompt a dangerous race to the bottom between state and federal regulators.

Monetary compensation for non-material damage now and then in the perspective of French and Polish legal systems

The last decades have witnessed – in civil law jurisdictions – a growing concern about instruments of legal protection of non-material interests, in particular: redressing non-material losses sustained as a result of tortious acts. Legislation and case-law alike try to address this complex problem. The aim of this paper is to present, in a comparative context, the historical development of admissibility of monetary compensation claims for non-material damage in French civil law (the Napoleonic Code) and jurisdictions that have adopted French law or structured their civil law legislation around French paradigms as well as in Polish law. Though the contemporary private law of Poland is far more related to the laws of Germany and Austria, French civil law, which was in force in the territory of Congress Poland for over a century, was and still is an important benchmark for ever-valid comparative analysis. The very broad and liberal way in which contemporary Polish law approaches the issue of compensation for non-property harm seems to be one of the issues where French inspirations played an important role. The authors employ legal comparative and historical methods, supplanted by formal-dogmatic ones, to present the evolution of tort law concerning monetary liability for non-material loss.

Decentralization and mutual liability rules

This paper builds on the recent work of Groote Schaarsberg et al. (Math Methods Oper Res 87(3):383–409, 2018) on mutual liability problems. In essence, a mutual liability problem comprises a financial network in which agents may have both monetary individual assets and mutual liabilities. Here, mutual liabilities reflect rightful monetary obligations from past bilateral transactions. To settle these liabilities by reallocating the individual assets, mutual liability rules are analyzed that are based on centralized bilateral transfer schemes which use a certain bankruptcy rule as its leading allocation mechanism. In this paper we derive a new characterization of mutual liability rules by taking a decentralized approach instead, which is based on a recursive individual settlement procedure. We show that for bankruptcy rules that satisfy composition, this decentralized procedure always leads to the same allocation as the one prescribed by the corresponding mutual liability rule based on centralized bilateral transfer schemes. Finally, we introduce a new reduction method for mutual liability problems and prove that any bankruptcy-rule-based mutual liability rule is invariant with respect to such a reduction.

The Treasury Dollar: Plan

The Coronavirus pandemic calls for both emergency supply-side productive mobilization and demand-side spending support measures. Measures of the latter kind are fortunately now under discussion in Congress. What remain to be developed are two things: first, complementary supply-side measures – as urgent as demand-side ones in light of social distancing’s suppressive effects on productive activity; and second, both the funding measures those efforts require and a payments infrastructure through which funding, and spending – including remote spending – can be channeled both now and in future. The plan offered here accordingly calls for: • Immediate suspension of Section 14 of the Federal Reserve Act (FRA), which prohibits direct Fed purchases and monetization of Treasury securities. • Immediate opening of the FRA Section 13(3) Discount Window, and the Section 372 Member Bank ‘bankers acceptance’ authority, to additional forms and higher amounts of monetizable collateral than currently accepted. • Expeditious issuance of a new dollar-valued ‘Treasury Dollar Bill’ and ‘starter deposits’ thereof in Treasury Direct Accounts (TDAs) for all citizens and legal residents through the already existing, 24/7 digital ‘Treasury Direct’ portal. • Immediate designation of Treasury Dollar Bills as legal tender, or in the alternative, opening of Fed Transaction Accounts (FTAs) paired 1-1 with TDAs, into which Treasury Dollar Bills can be converted 1-1 into Fed dollar bills. Treasury used to issue dollars (‘Greenbacks’), so TDBs aren’t ‘exotic.’ • Immediate establishment of universal P2P connectivity among all TDAs or FTAs, such that all citizens and legal residents can make payments to one another electronically via smartphones or other electronic devices in literally any legal transaction. • Cryptographic and legal protection of financial and data privacy of all TDA or FTA accounts and transactions. • Payment of interest on TDA or FTA accounts, both to afford more efficient monetary policy transmission and to render transparent, as should always be done in a Democratic Republic, the essential identity of all sovereign monetary liabilities, be they Federal Reserve Notes (‘dollar bills’) or Treasury securities (notes, bills, and bonds).

Features of payments in foreign currency in budgetary institutions

The article discusses the procedure for accounting for objects in a foreign currency. It is shown that foreign currency assets, liabilities, and other items are recorded simultaneously in foreign currency and in rubles. Analyzed the accounting treatment of exchange rate differences, it is shown that their records depend on the period. Examples of currency monetary and non-monetary accounting items and the specifics of their reflection in accounting transactions are given. Monetary assets and liabilities are recorded at the exchange rate at the date of recognition. The option of recognition at the reporting date is possible. Non-monetary assets and liabilities are recognized at the date of recognition and are no longer restated. An example of accounting for non-monetary assets accepted by an institution at fair value as an exception to their rules is given. The article reflects that the revaluation of such assets at the new exchange rate is made in cases when the fair value of the object changes. It shows the mechanisms for accounting for the return of advances in foreign currency and options when such debt is recalculated or not recalculated after being accepted for accounting.

CONCEPTUAL BASIS OF THE ESSENCE INTERPRETATION AND EVALUATION OF TAX CONTROL EFFECTIVENESS IN UKRAINE

Introduction. The formation of tax policy on the basis of economic efficiency, stability, transpa-rency and its approximation to international and European standards is impossible without effective tax control. Tax control as a component of the tax system faces the task of overcoming the uneven distribution of the tax burden in the economy, improving the inefficient system of tax benefits, reducing arrears of taxes and fees to the budget to de-shadow the Ukrainian economy and legalize income of legal entities and individuals. The importance of tax control is especially relevant due to the significant dependence of budget revenues at all levels on the tax component. The purpose of the article is to study the essence and assess the effectiveness of tax control in ensuring the fiscal function of tax revenues. Results. Systematization of approaches to the essence interpretation of the category "tax control" allowed to identify institutional, targeted and systemic approaches, according to which tax control is an institution of the public sector, part of the tax system, targeted activities to ensure effective financial system and economy of the country as a whole. According to the analysis results of quantitative indicators of tax control (number of inspections and the amount of accrued liabilities to be repaid) it was found that during 2014-2019 the most active from the point of view of tax control is Kyiv, where are the largest number of inspections and the largest amounts accrued monetary liabilities to be repaid. Conclusion. In view of the general dynamics of tax audits, during 2014-2019 there is a downward trend, while the amounts of accrued monetary liabilities have an upward trend, due to the growing number of tax offenses and increasing cases of tax evasion. Given this, a conceptual model of harmonization of the participants’ interests in tax relations in Ukraine is proposed, aimed at improving the tax control effectiveness. Keywords: tax system, tax revenues, tax control, tax audits, accrued liabilities.

Earnings Management Through Foreign Currency Transactions on Companies Listed on Indonesia Stock Exchange

This research aims to examine whether the condition of Rupiah currency, the magnitude of monetary liabilities in foreign currencies, and the condition of operating profit affects the management’s aggressiveness to perform earnings management through foreign exchange gain or loss (FEGL) post. This research was conducted on 258 companies listed on the BEI in 2009 to 2015. This research was successfully proved on earnings management through foreign currency transactions phenomenon for several conditions. First, in the condition of Rupiah appreciation, the managers that have monetary liabilities in foreign currency are less than the monetary assets in foreign currency are more daring to make earnings management through FEGL post than companies that have monetary liabilities in foreign currency greater than monetary assets in foreign currency. Second, managers of companies that decreasing in operating profit, more daring to make earnings management through FEGL post than companies that experience an increase in operating profit. Under the depreciation of the Rupiah, the managers of companies with monetary liabilities in foreign currency are less than monetary assets in foreign currency, are more aggressive to perform earnings than the managers of companies who have monetary liabilities denominated in foreign currency greater than the monetary assets in foreign currency.

Subjects and effectiveness of tax control

The article deals with the composition of the participants in the monitoring of tax flows and the effectiveness of tax control (control work) in the part of the tax payments. The purpose of the work is to study the effectiveness of tax administration, fees, payments, monitoring of tax and non-tax (financial) flows in the regions of Ukraine by the results of tax control (control and verification measures). The expediency of using the concepts of «tax and non-tax flows» for deepening and possible in the further studies of mathematical description of the trends of changes in the corresponding budget revenues is substantiated. The interaction of control bodies (tax authorities) and taxpayers as subjects of the tax process is generalized. The functions of the controlling bodies (State Fiscal and Customs Service of Ukraine) to ensure the filling of the revenue part of the state and local budgets are considered. The components of monitoring the administration of taxes, fees, payments are investigated. The analysis of tax and non-tax receipts of income (payments) to ensure the formation of state and local budgets is conducted. The data of the main indicators of control work in the oblasts of the western region of Ukraine for 2014-2018 are presented. Important are additional payments to the Consolidated Budget of Ukraine, which are the result of elimination of violations of the tax legislation of Ukraine (underpayment of taxes and other payments, penalties). The study shows the uneven income of this financial (cash) flow. The share of cash accruals in tax revenues of the Consolidated Budget of Ukraine also shows some fluctuations of the tax flows. The article proves that in the Western regions of Ukraine, the number of documentary checks in 2018 decreased by almost 50% compared to 2014, and the amount of additional accrued monetary liabilities in 2018 increased by one third (33.8%). A similar situation is peculiar to Ukrainian economy. This can be seen as an indication of the improvement in the quality of tax activity in these regions.

Obtaining Information on the Debtor’s Assets in the Administrative Enforcement of Monetary Liabilities

The article considers one of the most important issues related to preparing the administrative enforcement of monetary liabilities, i.e. obtaining information on the debtor’s assets. From the governing provisions of the act on enforcement proceedings in administration, one must crate a standard, imposing on the creditor the obligation to obtain information on the debtor’s assets, especially in the pre-enforcement phase, but also in the course of the enforcement proceedings as well as upon its (ineffective) completion. Meanwhile, the legislator should create a precise and effective statutory regulation allowing the creditor to fulfil this obligation. The current statutory regulation is incomplete and gives rise to doubts as regards its compliance with the constitutional principles of specificity and proportionality. On the other hand, the judicial practice of the Court of Justice of the European Union demonstrates the existence of multiple barriers and legal situations that result in the occurrence of bases to refuse the provision of information to creditors under the act on mutual assistance.

The Present Dynamics of Financial Risks Related to Macroeconomic Policies in Oecd Countries, and Business Cycles

In this study, we aim to attempt to analysis the effects of financial risks on the shaping of macro-economic policies that directly touch with business cycles in OECD countries. As known, the public liabilities with financial budget deficit fact, as a concept of financial risk element, is an important phenomenon that affects all the whole other financial and economic balance dynamics in the developed economies as well as less developed countries. In this point, the financial risks leaned on the consolidated central government budget put forth to meaningful financial deficits interested in the global integrations and its measurement matter of deficits in the same process, which aim to directly analysis macroeconomic policies. First, the priority effect of financial risks based on the budget deficits is appeared on the harmonization of monetary with fiscal policies as macroeconomic politics, and this concept has been an important financial matter especially in developing countries toward to determine macro elements. Second, these effects should be questioned for ensuring stability of economic in the business cycles related to GDP together with the business cycles related to financial liabilities in OECD countries. In this context, the effects of financial risks should be considered in two structural balances terms related public budget as budget surplus and deficits aimed at macroeconomic policies dynamics that also means correlation among these concerned financial dynamics. Thirdly, it is related to the location in public decision making process of these effects. Actually, on the other hand this situation reflects the effects of financial liabilities as a foundation stone on public decision making process that should need monetary liabilities like contend with probably inflation ensured.

Perspectives of currency board in Bosnia and Herzegovina

The Currency Board arrangement (CBA) is a specific form of monetary authorities with limited functions. Central Bank of Bosnia and Herzegovina operates under the CBA with the following characteristics: complete coverage of the monetary liabilities with the foreign exchange reserves, there are only required reserves as the instrument of monetary policy, there are the prohibition on granting loans and prohibition of open market operations, and the exchange rate of the local currency is pegged to the euro as “anchor” currency. The top economic experts have completely different views about the efficiency and purpose of the CBA, under which the central banks of some countries in the East Europe (eg. Bulgaria, Lithuania, and Estonia until recently) also operate. This paper explains the basic elements of the central bank operations under the CBA, highlights the basic implications of such an arrangement on economic situation in the country, and considers possible scenarios for exiting this arrangement in perspective, in fact, it indicates the potential exit strategy in the course of leaving the CBA.