Serb Central Bank Member Quits Over Changes to Bank Law

A member of the National Bank of Serbia’s governing council resigned today, joining the chairman and two other colleagues who stepped down a week ago over changes to the central bank law.

Kosta Josifidis quit his post saying that “essential changes” to the concept of the central bank’s function entails changes in personnel.

Chairman Bosko Zivkovic and council members Milojko Arsic and Zorica Mladenovic resigned on Aug. 7 saying the new amended central bank law “grossly violates basic internationally accepted principles of the autonomy and independence of a central bank from the government or individual interest groups.” Governor Dejan Soskic and vice-governor Bojan Markovic also resigned.

Lawmakers adopted the new law on Aug. 4, restoring parliamentary control over the central bank, a move criticized both by the International Monetary Fund and the European Union, even as Serbia seeks to discuss a bailout program with the IMF and continue on its path to joining the EU. They appointed Jorgovanka Tabakovic, vice president of the ruling Progressive Party, as the central bank’s new governor on Aug. 6.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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