Minister likes independent NBS, but not governor

BELGRADE Mladjan Dinkic has said that he "respects very much the independence of the National Bank of Serbia", but that he was "no fan of Governor Dejan Soskic". This was the response of the economy and finance minister in the new Serbian government, asked by Belgrade-based daily Blic to comment on whether SNS official Jorgovanka Tabakovic would "do better" than the current central bank chief. Minister likes independent NBS, but not governor Reports that the change of government in Serbia spelled the end of Soskic's stint at the helm of the NBS caused a reaction of several NGOs, institutions and individuals, who on Monday asked the authorities "not to collapse the rule of law by unlawfully replacing the governor". One of the signatories of the petition, law professor Vesna Rakic-Vodinelic, blamed the country's Constitution for "this situation", and warned that other officials would also be sacked after Soskic. In the meantime, Vecernje Novosti newspaper is reporting that the ruling coalition will soon draft changes to the Law on the National Bank of Serbia that will allow for a new governor to be appointed. According to the currently valid regulations, the central bank governor is "to all intents and purposes impossible to replace", the daily writes, and explains that the procedure to do so is "complicated, protected from political influence, and effectively in the hands of the five-member Council of the NBS". A governor can be sacked "only in case they commit grave transgressions". In that case, the Council makes its decision, which then must be confirmed by the Parliamentary Committee on Finances. A final decision is made by MPs. Council member Milojko Arsic confirmed there were indications that the law could be changed, and stated that the move to remove the current governor "would be problematic from the point of view of the Constitution" - considering that the country's highest legal act guarantees the central bank's independence. Arsic also said that there was "not a single reason for Soskic's departure", as the Council appraised the bank's performance in each quarter, finding it satisfactory. "If this government does it anyway, it will show that the central bank is but a service to the authorities," he asserted. Dejan Soskic (Tanjug, file) B92 Blic Vecernje novosti

Minister likes independent NBS, but not governor

Reports that the change of government in Serbia spelled the end of Šoškić's stint at the helm of the NBS caused a reaction of several NGOs, institutions and individuals, who on Monday asked the authorities "not to collapse the rule of law by unlawfully replacing the governor".

One of the signatories of the petition, law professor Vesna Rakić-Vodinelić, blamed the country's Constitution for "this situation", and warned that other officials would also be sacked after Šoškić.

In the meantime, Večernje Novosti newspaper is reporting that the ruling coalition will soon draft changes to the Law on the National Bank of Serbia that will allow for a new governor to be appointed.

According to the currently valid regulations, the central bank governor is "to all intents and purposes impossible to replace", the daily writes, and explains that the procedure to do so is "complicated, protected from political influence, and effectively in the hands of the five-member Council of the NBS".

A governor can be sacked "only in case they commit grave transgressions". In that case, the Council makes its decision, which then must be confirmed by the Parliamentary Committee on Finances. A final decision is made by MPs.

Council member Milojko Arsić confirmed there were indications that the law could be changed, and stated that the move to remove the current governor "would be problematic from the point of view of the Constitution" - considering that the country's highest legal act guarantees the central bank's independence.

Arsić also said that there was "not a single reason for Šoškić's departure", as the Council appraised the bank's performance in each quarter, finding it satisfactory.

"If this government does it anyway, it will show that the central bank is but a service to the authorities," he asserted.