World Bank comment on the proposed amendments to Law on National Bank of Serbia

August 3, 2012

Loup Brefort, Country Manager, World Bank in Serbia

  • I am happy to have the opportunity to correct what I believe has been inaccurate statements about the position of the World Bank regarding the new proposed NBS Law
  • On the occasion of her recent visit, during her meetings with members of Government and Head of State, our Regional Director advised against changing the existing law that was passed only 2 years ago and that is generally regarded as in line with best practices and she urged the authorities not to take steps that would compromise the actual or perceived independence of the National Bank
  • The WB is concerned that a new law seems to be rushed through Parliament without the appropriate level of consultation for such a critically important piece of legislation
  • At the request of the National Bank, the World Bank experts reviewed the proposed new draft (in less than 24hrs) and submitted yesterday a written opinion.
  • In this communication, the WB raised - inter alia - some very serious concerns with proposed Articles 3 & 10, Article 9, Article 26 and Article 18. We hear that this last - that would have enabled NBS to finance Government deficit - may possibly be removed and we believe this would be a good step, but the other concerns remain.
  • We can only urge the government and the members of Parliament to carefully consider possible impact of changing the existing law and introducing some of the provisions that are contemplated.


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