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Narodna Banka Srbija Asks to Bring Central Bank Law to EU Norms

The National Bank of Serbia asked lawmakers to amend the central bank law again to adjust rules to European Union standards and strengthen the monetary institution’s independence.

Lawmakers will probably debate and vote on the amendments when they meet on Nov. 1, according to the draft submitted to Parliament in Belgrade. Key changes relate to the length of the terms for vice governors and members of the Governor’s Council.

The Narodna Banka Srbije said amendments adopted on Aug. 4 “left some confusion” and prompted concern the law still doesn’t comply with EU laws and needs to be changed as part of Serbia’s EU accession process.

Serbia passed a law on Aug. 4 that gave Parliament control over the central bank, prompting the governor, one vice governor and four members of the Governor’s Council to quit. Parliament appointed Jorgovanka Tabakovic to be the new central bank governor on Aug. 6. The law was criticized by the International Monetary Fund, the World Bank and the EU.

The IMF said in September any new loan deal with Serbia will depend on fiscal consolidation measures and how the government handles the central bank’s autonomy in practice.

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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