Serbian central bank governor submits resignation

BELGRADE -- Governor of the National Bank of Serbia (NBS) Dejan Šoškić has submitted his resignation, it has been confirmed in Belgrade on Thursday.

Dejan Šoškić (Tanjug, file)
Dejan Šoškić (Tanjug, file)

The resignation was sent to the Serbian parliament speaker, who said it would be valid once a court had verified it.

Šoškić decided to step down on Thursday as the Serbian parliament debated changes to the Law on the NBS, drafted by the country's new ruling coalition, which, if adopted, were expected to pave the way for his sacking.

In the resignation letter, Šoškić stated that the proposed changes to the law were the reason behind his decision, describing the legislation as "deteriorating the independence of the central bank".

If made into law, the changes would enable for the possibility of decisions being made within the NBS "that could spur economic and financial instability in the country", asserted the now outgoing governor.

Šoškić also wrote that with his resignation he wished to "prevent politically extorted changes at the top of an independent institution like the NBS to be the only reason to adopt a bad law", and that he hoped his departure would enable the draft's authors to "analyze and consider more carefully its consequences, and harmonize it with principles of independent central banks that are valid in countries with well-arranged financial systems".