Serbia looks to revoke controversial central bank controls

On Thursday, Serbia held an emergency session in parliament to look at revoking sections of its central bank law that has been criticized by the European Union and the International Monetary Fund (IMF) as restricting the independence of the monetary institution.In a barely...

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Serbia looks to revoke controversial central bank controls



bne - 02.11.2012

On Thursday, Serbia held an emergency session in parliament to look at revoking sections of its central bank law that has been criticized by the European Union and the International Monetary Fund (IMF) as restricting the independence of the monetary institution.
In a barely disguised attempt to oust the previous central bank governor, who was committed to tight fiscal programmes to keep the deficit in check, the new Socialist-Progressive coalition passed a central bank law that was sharply criticized by the EU and IMF as it restricted the independence of monetary authorities by placing them under political control.
But the country now needs to restrat talks with the IMF about a new bailout loan and the new central bank governor, party hack Jorgovanka Tabakovic, said the regulation needs to be changed in order to align it with EU rules, TV B92 reported.
The proposed changes envisage that vice governors mandate will be four, three and two years, the president of the Council of Governors will have a mandate that will last five years and the Councils members will have mandates of four, three, two and one year. The NBS has explained that this would enable continuity in the work of the central banks organs bearing in mind that not all vice governors and Council members will have full mandates at the same time.
Source: bne


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