Parliament approves law on problematic banks
The Serbian parliament late on Friday in Belgrade adopted a law drafted by the government, meant to enable takeover of property and obligations of some banks.
Friday, 26.10.2012.
21:05
BELGRADE The Serbian parliament late on Friday in Belgrade adopted a law drafted by the government, meant to enable takeover of property and obligations of some banks. The law was drafted "in order to preserve Serbia's financial stability", it was previously explained. Parliament approves law on problematic banks Its adoption will pave the way for the Postanka Stedionica bank (Postal Service) to take over Nova Agrobanka. This will also allow clients of the bankrupt Agrobanka to access and manage their savings account. An amendment submitted to the original draft limited the period of time that the law will be in effect to two years, while another specified that it could only apply to those banks that were majority owned by either the state or provincial authorities. Any takeover will depend on a positive opinion given by the National Bank of Serbia (NBS). The law was adopted by 129 votes cast by MPs of the ruling parties, while 19 opposition MPs voted against. Earlier this week, Finance and Economy Minister Mladjan Dinkic announced that Nova Agrobanka clients would be able to manage their savings starting Monday, October 29. When the government confirms a contract transferring all 250,000 deposits to Postanka Stedionica, Nova Agrobanka will be declared bankrupt. Dinkic also said the law was the best solution that would help maintain the financial stability after the Agrobanka scandal came to light. He stressed that it was at the same time a forced solution that would help halt the spread of the problems to the rest of the banking sector. During the debate, the opposition argued that the draft was unconstitutional and represented "a dangerous precedent". Late on Friday, reports said that President Tomislav Nikolic had signed the bill passed by MPs into law. The Serbian parliament in session (Tanjug) Beta Tanjug
Parliament approves law on problematic banks
Its adoption will pave the way for the Poštanka Štedionica bank (Postal Service) to take over Nova Agrobanka.This will also allow clients of the bankrupt Agrobanka to access and manage their savings account.
An amendment submitted to the original draft limited the period of time that the law will be in effect to two years, while another specified that it could only apply to those banks that were majority owned by either the state or provincial authorities.
Any takeover will depend on a positive opinion given by the National Bank of Serbia (NBS).
The law was adopted by 129 votes cast by MPs of the ruling parties, while 19 opposition MPs voted against.
Earlier this week, Finance and Economy Minister Mlađan Dinkić announced that Nova Agrobanka clients would be able to manage their savings starting Monday, October 29. When the government confirms a contract transferring all 250,000 deposits to Poštanka Štedionica, Nova Agrobanka will be declared bankrupt.
Dinkić also said the law was the best solution that would help maintain the financial stability after the Agrobanka scandal came to light.
He stressed that it was at the same time a forced solution that would help halt the spread of the problems to the rest of the banking sector.
During the debate, the opposition argued that the draft was unconstitutional and represented "a dangerous precedent".
Late on Friday, reports said that President Tomislav Nikolić had signed the bill passed by MPs into law.
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