Serbia amends central bank law slammed by EU, IMF

(BELGRADE) - Serbia on Monday changed its central bank law in a bid to downplay criticism by the EU and IMF that earlier legislation limited the bank's independence.

By passing the amendments, Serbia's parliament revoked an article requiring lawmakers' approval of central bank statutes and introduced a policy of staggering nominations of top bank officials over time.

In August, Serbia's new conservative-led coalition tightened political control over the institution, raising stiff objections from the European Union and the International Monetary Fund.

With the changes, which were approved by 131 deputies in a 250-seat parliament, Serbian officials said the central bank would now be spared from political meddling.

"The reason for these changes is to bring the regulations closer to EU legislation, bearing in mind Serbia's strategy to join the EU," said central bank governor Jorgovanka Tabakovic, who is also deputy chief of the ruling Serbian Progressive Party.

But the opposition refused to support the changes, saying they were cosmetic and failed to meet EU and IMF's demands.

The provision that allows parliament to easily replace the bank governor and other top officials was not changed by the amended law.

The IMF said it would provide its opinion on the change next week when its mission was due to arrive for a new round of talks with Serbian officials.

Serbia's government, elected in May, is seeking a new loan from the IMF which in February froze a one billion euro stand-by loan because Belgrade did not keep to targets agreed for the 2012 budget.