July 31 (Bloomberg) -- Ties between Serbia and the International Monetary Fund may be damaged by the Balkan country’s new central bank law and other steps that affect the National Bank of Serbia’s independence, Politika reported.
The IMF is “very concerned” about possible changes to the law and they could reflect on Serbia’s program with the institution, Politika said, citing the IMF’s resident representative Bogdan Lissovolik.
Prime Minister Ivica Dacic’s Cabinet, sworn in on July 27, said it will replace Governor Dejan Soskic if he resists government efforts to stimulate growth through expansive fiscal policies. Soskic vowed on July 16 not to resign. Weekly magazine NIN wrote on July 25 that the government will seek to amend the central bank law within a week or two to remove Soskic.
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