law

Amendments to Serbia’s central bank law have been adopted by MPs today that could both help and hinder the Bank’s independence. A new governor is expected soon, now that the law has been approved.

Under the new rules, Serbia’s president will be able to nominate the bank governor. Previously, the governor was previously named and approved by parliament. Parliament will still confirm the nomination by majority vote.

Presidential nomination raises the fear of political meddling. Reuters expands:

The last governor, Radovan Jelasic, resigned in March after six years in office, with analysts saying he was unwilling to ease monetary policy in line with government demands to help the economy, which contracted three percent in 2009.

But many interpret the law overall as strengthening the independence of the bank. Belgrade media Read more