Tuesday, April 13, 2010
The Council of the National Bank on Governor's resignation
Belgrade, April, 06. 2010 ( Source : B92) - The Council of the National Bank of Serbia (NBS) is set to accept Governor Radovan Jelašić’s resignation as it meets today, reports said. Jelašić announced his resignation last month, and said the decision came due to personal reasons. President of NBS Council Dejan Šoškić told B92 that the current law did not envisage a deadline for electing a new head of the central bank, and said he therefore expected that the procedure "could take a while". The current law says that the Parliamentary Finance Committee formally nominates a candidate for governor, but the PM has recently announced a new law on the NBS, with one of the envisaged changes related to the institution that makes nominations. According to reports, it is "being considered" that the president of the republic should choose candidates. Šoškić explained that the selection of a new governor is not expected soon precisely because of the expected changes to the law. "Adoption of a new law requires a long-term procedure, primarily drafting the bill itself and after that the bill should become an official proposal, then it must go to the parliament agenda, so it’s a process which will take some time. I would be surprised if it took less than two, or three months,” he said. Unofficially, the ruling Democratic Party (DS) will nominate a candidate instead of G17 Plus, which has so far produced central bank chiefs from its ranks. Precisely Šoškić, who is also one of the members of the prime minister's economic team and professor at the Faculty of Economy, is being mentioned one of the most serious candidates. Šoškić confirmed for B92 for the first time that he held informal talks on the subject. “There were some informal contacts, however, I would let the democratic process take its course at this point. It is certain that many more of these preliminary consultations should be carried out in order to come up with a concrete proposal for this important position,” he explained. “This is a complicated process of mutual agreement and it would be hard to assume that it can be finished in a short time,” Šoškić concluded.
Monday, April 12, 2010
Doubt over JAT debt plan
Belgrade, April, 05. 2010 ( Source: B92) - Economic analyst Miša Brkić does not share Prime Minister Mirko Cvetković’s optimism as far as getting Jat Airways out of debt is concerned.
“t is good that the state decided to let go of Jat, because it showed that it is not capable of running such a company,” Brkić said. “I think that Jat will not be able to cover all its losses with its property. When a company goes into bankruptcy, then the creditors are given money from the amount that already exists, there is not money for everything else, and then the creditor get shorted. Unless the state decides to pay what is owed to the creditors, in which instance it would be paying from the budget,” Brkić said. He said that the state can, but does not have to leave part of Jat’s ownership for itself, adding that the citizens care about having cheap flights and safe planes more than they care about who owns the company. The decision to sell the company is seen as a good one by economic analyst Ruža Ćirković as well.
.”
A million Euros needs to be invested in that company just to get it working. I do not believe that Jat is in good shape. But it is easier to sell it without debts. We made the debts, rather, the government with the scandalous way it led the company,” she said. Two years ago, the government tried to sell 51 percent of Jat’s ownership for EUR 51mn. The tender fell through because no one wanted to participate in it, even though Russian Aeroflot was said to have shown interest. There has also been talk that Jat is negotiating a strategic partnership with Turkish Airways, and there was also speculation that the Marbo factory, which makes chips and snacks, could buy the national air travel company
“t is good that the state decided to let go of Jat, because it showed that it is not capable of running such a company,” Brkić said. “I think that Jat will not be able to cover all its losses with its property. When a company goes into bankruptcy, then the creditors are given money from the amount that already exists, there is not money for everything else, and then the creditor get shorted. Unless the state decides to pay what is owed to the creditors, in which instance it would be paying from the budget,” Brkić said. He said that the state can, but does not have to leave part of Jat’s ownership for itself, adding that the citizens care about having cheap flights and safe planes more than they care about who owns the company. The decision to sell the company is seen as a good one by economic analyst Ruža Ćirković as well.
.”
A million Euros needs to be invested in that company just to get it working. I do not believe that Jat is in good shape. But it is easier to sell it without debts. We made the debts, rather, the government with the scandalous way it led the company,” she said. Two years ago, the government tried to sell 51 percent of Jat’s ownership for EUR 51mn. The tender fell through because no one wanted to participate in it, even though Russian Aeroflot was said to have shown interest. There has also been talk that Jat is negotiating a strategic partnership with Turkish Airways, and there was also speculation that the Marbo factory, which makes chips and snacks, could buy the national air travel company
Saturday, April 10, 2010
The resignation of the NBS Governor will be accepted on April 6th
Belgrade, April 01. 2010 ( Source: Tanjug) - The outgoing Governor of the National Bank of Serbia Radovan Jelasic announced yesterday that the Council of the NBS will accept his resignation on April 6th and added that he does not know who are the candidates for the post, news agency Tanjug reports.
During the break at the international conference on corporate social responsibility in the NBS, he told reporters that the Council's will pass their decision to accept the resignation to the Finance Committee of the Parliament of Serbia, which should confirmed it
Jelasic told reporters that he made his decision to resign after long consideration and that the same is not made in haste. He also said that he feels relived now when decision is public and the resignation in process.
During the break at the international conference on corporate social responsibility in the NBS, he told reporters that the Council's will pass their decision to accept the resignation to the Finance Committee of the Parliament of Serbia, which should confirmed it
Jelasic told reporters that he made his decision to resign after long consideration and that the same is not made in haste. He also said that he feels relived now when decision is public and the resignation in process.
Serbia's trade deficit USD 1.1bn
Belgrade, April 02. 2010 ( Source: B92 ) - Serbia's trade deficit was USD 1.1bn in the first two months of 2010, which is 14.1 percent less than the same period last year. This is according to the Statistical Office, which made the announcement on Wednesday. Exports during this period were worth USD 1.2bn, which was a 20.9 percent increase compared to the previous year, while imports were 1.3 percent higher at USD 2.3bn. The import was covered 52.6 percent by the export, which is an increase compared to the same period in 2009, when it was at 44 percent. More than half of the trade was conducted with EU countries, while the biggest surplus was recorded in trading with Montenegro, Bosnia-Herzegovina and Macedonia. The highest deficit was recorded with the Russian Federation, due to the import of oil and natural gas.
Friday, April 9, 2010
The resignation of the NBS Governor will be accepted on April 6th
Belgrade, April 01. 2010 ( Source: Tanjug) - The outgoing Governor of the National Bank of Serbia Radovan Jelasic announced yesterday that the Council of the NBS will accept his resignation on April 6th and added that he does not know who are the candidates for the post, news agency Tanjug reports.
During the break at the international conference on corporate social responsibility in the NBS, he told reporters that the Council's will pass their decision to accept the resignation to the Finance Committee of the Parliament of Serbia, which should confirmed it
Jelasic told reporters that he made his decision to resign after long consideration and that the same is not made in haste. He also said that he feels relived now when decision is public and the resignation in process.
During the break at the international conference on corporate social responsibility in the NBS, he told reporters that the Council's will pass their decision to accept the resignation to the Finance Committee of the Parliament of Serbia, which should confirmed it
Jelasic told reporters that he made his decision to resign after long consideration and that the same is not made in haste. He also said that he feels relived now when decision is public and the resignation in process.
Serbia's trade deficit USD 1.1bn
Belgrade, April 02. 2010 ( Source: B92 ) - Serbia's trade deficit was USD 1.1bn in the first two months of 2010, which is 14.1 percent less than the same period last year. This is according to the Statistical Office, which made the announcement on Wednesday. Exports during this period were worth USD 1.2bn, which was a 20.9 percent increase compared to the previous year, while imports were 1.3 percent higher at USD 2.3bn. The import was covered 52.6 percent by the export, which is an increase compared to the same period in 2009, when it was at 44 percent. More than half of the trade was conducted with EU countries, while the biggest surplus was recorded in trading with Montenegro, Bosnia-Herzegovina and Macedonia. The highest deficit was recorded with the Russian Federation, due to the import of oil and natural gas.
Wednesday, April 7, 2010
The most interesting candidates for the new governor
Belgrade, March, 31. 2010 (Serbia Today) - Interviews with the candidates for the new Governor of the National Bank are largely under way, as daily "Blic" unofficially learned. It is likely that the Democratic Party coalition partners will propose Dejan Soskic, a professor of the Faculty of Economics of the Belgrade University and the President of the Council of the National Bank of Serbia as their favorite candidate.
Since the NBS Governor Radovan Jelasic suddenly resigned, Serbian Prime Minister Mirko Cvetkovic has conducted several interviews with candidates for the new governor. According to unofficial reports, prof. Dejan Šoškić and Dusan Vujovic, World Bank chief economist, are the two candidates for the position of the first man of the NBS. The public also speculated about Vladimir Čupić, Chairman of the Executive Board "Hypo Alpe-Adria Bank, Goran Pitic, Chairman of the Board," Societe Generale Bank, and Kori Udovicki, former Governor. A proposed candidate for the new Governor must be acceptable to all coalition partners. The most qualified candidate will be suggested by the Democratic Party, but this proposal must be accepted by other parties in the coalition. There are a lot of good professionals, but not all of them are qualified for this public function where specific experience is required and strong managerial skills together with political integrity and independence.
The procedure for the election of a new Governor assumes that at the first meeting of the Council of Governors it will be accepted the resignation of Radovan Jelasic, and the Council will then instruct the Finance Committee of the National Assembly. The plan is that this will be done latest by April 6th , although the procedure has a legal deadline of 60 days. Even after accepting the resignation, the NBS former Governor will continue to perform all tasks until the Parliament Assembly does not appoint a new Governor, at the suggestion of the Committee on Finance. In any case, it is expected that by the end of the week the public and the Finance Committee, will know who is the proposed candidate. Meanwhile, Radovan Jelasic, the outgoing Governor, still performs his duties. He did not accept any new position and rejects claims that he received an job offer from the World Bank, which some media have reported.
Leading economists say now that the new Governor is about to be elected, it is the right moment to change the Law on the National Bank of Serbia. According to the current law from 2003, the mechanism of management and decision-making involves three restrictions - the Governor, the Monetary Board and the Council of the NBS. Dr. Milojko Arsic, Professor of the Faculty of Economics, says that the most effective solution would be the existence of a Council of the NBS. - President of the Council would be the governor and the Council would have six to eight members. In this way, decisions would be more balanced, and would be much more collective responsibility. In any case, would be strengthened by the independence of central banks - indicating Arsic.
Since the NBS Governor Radovan Jelasic suddenly resigned, Serbian Prime Minister Mirko Cvetkovic has conducted several interviews with candidates for the new governor. According to unofficial reports, prof. Dejan Šoškić and Dusan Vujovic, World Bank chief economist, are the two candidates for the position of the first man of the NBS. The public also speculated about Vladimir Čupić, Chairman of the Executive Board "Hypo Alpe-Adria Bank, Goran Pitic, Chairman of the Board," Societe Generale Bank, and Kori Udovicki, former Governor. A proposed candidate for the new Governor must be acceptable to all coalition partners. The most qualified candidate will be suggested by the Democratic Party, but this proposal must be accepted by other parties in the coalition. There are a lot of good professionals, but not all of them are qualified for this public function where specific experience is required and strong managerial skills together with political integrity and independence.
The procedure for the election of a new Governor assumes that at the first meeting of the Council of Governors it will be accepted the resignation of Radovan Jelasic, and the Council will then instruct the Finance Committee of the National Assembly. The plan is that this will be done latest by April 6th , although the procedure has a legal deadline of 60 days. Even after accepting the resignation, the NBS former Governor will continue to perform all tasks until the Parliament Assembly does not appoint a new Governor, at the suggestion of the Committee on Finance. In any case, it is expected that by the end of the week the public and the Finance Committee, will know who is the proposed candidate. Meanwhile, Radovan Jelasic, the outgoing Governor, still performs his duties. He did not accept any new position and rejects claims that he received an job offer from the World Bank, which some media have reported.
Leading economists say now that the new Governor is about to be elected, it is the right moment to change the Law on the National Bank of Serbia. According to the current law from 2003, the mechanism of management and decision-making involves three restrictions - the Governor, the Monetary Board and the Council of the NBS. Dr. Milojko Arsic, Professor of the Faculty of Economics, says that the most effective solution would be the existence of a Council of the NBS. - President of the Council would be the governor and the Council would have six to eight members. In this way, decisions would be more balanced, and would be much more collective responsibility. In any case, would be strengthened by the independence of central banks - indicating Arsic.
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