Amendments adopted to central bank law

BELGRADE -- MPs today adopted amendments to the Law on the National Bank of Serbia (NBS), under which the NBS governor will be appointed by the Serbian president.

Parliament will confirm the president's nominee by majority vote, appointing the governor to a six year term which can be renewed. He will be at the head of the NBS and will represent the institution.

As stated in the law, the NBS bodies are the executive board, which is comprised of the governor and vice-governors, the governor and the governor's council.

The executive board will take over all responsibilities of the Monetary Policy Committee, setting monetary and foreign exchange policy and working to maintain and strengthen the stability of the financial system. It will also focus on determining NBS monetary policy, NBS interest rates, terms and methods of issuing securities and short-term loans policy.

The Governor's Council will comprise five members, including the chairman, who will be nominated by the parliamentary Finance Committee and approved by the parliament for a period of six years with a right to re-election.

Among other things, the council will propose the NBS Statute, determine the exchange rate policy, adopt the NBS financial plan and annual financial reports and appoint an external auditor.

The NBS is Serbia's central bank, it is independent and autonomous, its bodies and their members cannot seek or take instructions from government bodies and organizations or from any other person, says the law.