The role of insolvency in transition and economic stabilization

The author analyses the role of insolvency to the new ldquolaw on insolvency in transition and economic stabilizationrdquo in our country. It is stated that there are a huge number of enterprises heavily in debt where most part of resources is blocked. To subsidize these enterprises require many budget funds, with no effects. The author considers possibilities to solve the status of these enterprises by insolvency: reorganization or bankruptcy¹. We should not be afraid of insolvency in our conditions. It does not mean the end of production and dismissal from job, but as the way to get rid the Serbian economy of debts, as well as to enable it to realize profit and open new jobs.