Serbia aims to tighten banking controls

Published on 06/08/2012 00:00

Ruling coalition politician Jorgovanka Tabakovic was nominated as the new governor of Serbia’s central bank yesterday.

The decision forms part of a move by the Socialist-led government to step up control over the bank in the face of stern 
criticism by the EU and IMF.

Serbian president Tomislav Nikolic nominated Tabakovic, an economist by education and a close ally of the president, to replace Dejan Soskic, who resigned last week citing threats to the bank’s independence.

The choice had been widely expected, as the government tries to hold the bank to its promise of more expansive fiscal policies in order to halt the country’s slide into recession. Parliament is expected to debate the nomination today.