Parliament debates changes to central bank law

BELGRADE The Serbian parliament on Thursday started a debate on amendments to the Law on the National Bank of Serbia (NBS) and election of ombudsman. Serbian Progressive Party (SNS) MP Veroljub Arsic on behalf of the proposers elaborated on the draft law and rejected claims of the opposition that the law would endanger independence of the NBS. Parliament debates changes to central bank law He also denied that the bill was being passed only in order to relieve NBS Governor Dejan Soskic of his duty. “The opposition has the right to criticize and as far as the importance of the changes is concerned, it is clear that it was necessary to act because bad consequences of NBS’ actions or lack of actions have been visible for a long time,” Arsic stressed. According to him, the draft is harmonized with the monitoring and control system of the central banks in the EU. On behalf of 105 MPs who proposed the bill, Arsic explained that the key changes were return of the monitoring function to parliament, that election of NBS would be done by parliament, expansion of the NBS Council’s jurisdiction and limitation of the Board of Directors and governor’s authorities. He said that allegations about the cause of the “enormous problems in Serbia” should be looked into and stressed that the central bank did not fulfill its duties – maintaining financial stability in the market and control of the financial institutions. Arsic stressed that the central bank had especially failed when it comes to control of the financial institutions, adding that the state would thanks to the NBS’ poor control have to allocate EUR 350-400mn for improvement of situation in certain institutions Democratic Party (DS) MPs asked whether the NBS and government had submitted their opinions on the bill, but were informed that their opinion was not necessary for the debate. Alliance of Vojvodina Hungarians (SVM) MP Laslo Varga said that his party would not support the draft law because it believed that its adoption would cause damage to Serbia’s EU integration process and jeopardize the NBS’ independence. “By adopting the draft, Serbia will violate the Stabilization and Association Agreement with the EU, which obligates the country to harmonize the legal system, and it will violate conditions for getting of the candidate status. One out of ten conditions for the candidate status was to raise the level of independent institutions,” he explained. Serbian Renewal Movement (SPO) MP Aleksandar Jugovic said that the bill was being passed only in order to dismiss the current governor and that it was not in accordance with the EU principles, adding that a “sharp reaction from Brussels” would follow. He added that the adoption of the draft would “slow down Serbia’s EU integration process”. LDP MP Zarko Korac said that “if this is the first bill that the new authorities will pass, then they are definitely not on the right track”. United Serbia (JS) MP Dragan Markovic said his party would support the draft, adding that Serbia would have to wait another six years to join the EU and that it needed to take care of its citizens in the meantime. Party of United Pensioners of Serbia (PUPS) whip Milan Krkobabic said that the changes to the law had nothing to do with Soskic’s competence and that the ruling majority should be given an opportunity to realize a new policy of economic development. The reasons offered for amendments underline that they do “not interfere with the independence and integrity of the central bank,” and that amendments are aimed at increasing the parliamentary oversight of the NBS in line with constitutional provisions. As regards the election of ombudsman, the Liberal Democratic Party (LDP), Democratic Party (DS), and Socialist Party of Serbia (SPS) recommended Sasa Jankovic for the second term in office. The majority of parliamentary groups backed the proposal. In their public statements, representatives of most parliamentary groups announced that they would support Jankovic's re-election. (Tanjug) B92 Beta Tanjug

Parliament debates changes to central bank law

He also denied that the bill was being passed only in order to relieve NBS Governor Dejan Šoškić of his duty.

“The opposition has the right to criticize and as far as the importance of the changes is concerned, it is clear that it was necessary to act because bad consequences of NBS’ actions or lack of actions have been visible for a long time,” Arsić stressed.

According to him, the draft is harmonized with the monitoring and control system of the central banks in the EU.

On behalf of 105 MPs who proposed the bill, Arsić explained that the key changes were return of the monitoring function to parliament, that election of NBS would be done by parliament, expansion of the NBS Council’s jurisdiction and limitation of the Board of Directors and governor’s authorities.

He said that allegations about the cause of the “enormous problems in Serbia” should be looked into and stressed that the central bank did not fulfill its duties – maintaining financial stability in the market and control of the financial institutions.

Arsić stressed that the central bank had especially failed when it comes to control of the financial institutions, adding that the state would thanks to the NBS’ poor control have to allocate EUR 350-400mn for improvement of situation in certain institutions

Democratic Party (DS) MPs asked whether the NBS and government had submitted their opinions on the bill, but were informed that their opinion was not necessary for the debate.

Alliance of Vojvodina Hungarians (SVM) MP Laslo Varga said that his party would not support the draft law because it believed that its adoption would cause damage to Serbia’s EU integration process and jeopardize the NBS’ independence.

“By adopting the draft, Serbia will violate the Stabilization and Association Agreement with the EU, which obligates the country to harmonize the legal system, and it will violate conditions for getting of the candidate status. One out of ten conditions for the candidate status was to raise the level of independent institutions,” he explained.

Serbian Renewal Movement (SPO) MP Aleksandar Jugović said that the bill was being passed only in order to dismiss the current governor and that it was not in accordance with the EU principles, adding that a “sharp reaction from Brussels” would follow.

He added that the adoption of the draft would “slow down Serbia’s EU integration process”.

LDP MP Žarko Korać said that “if this is the first bill that the new authorities will pass, then they are definitely not on the right track”.

United Serbia (JS) MP Dragan Marković said his party would support the draft, adding that Serbia would have to wait another six years to join the EU and that it needed to take care of its citizens in the meantime.

Party of United Pensioners of Serbia (PUPS) whip Milan Krkobabić said that the changes to the law had nothing to do with Šoškić’s competence and that the ruling majority should be given an opportunity to realize a new policy of economic development.

The reasons offered for amendments underline that they do “not interfere with the independence and integrity of the central bank,” and that amendments are aimed at increasing the parliamentary oversight of the NBS in line with constitutional provisions.

As regards the election of ombudsman, the Liberal Democratic Party (LDP), Democratic Party (DS), and Socialist Party of Serbia (SPS) recommended Saša Janković for the second term in office. The majority of parliamentary groups backed the proposal.

In their public statements, representatives of most parliamentary groups announced that they would support Janković's re-election.