Serbian Parliament Appoints Ruling Party Lawmaker As Central Bank Governor

Jorgovanka Tabakovic, vice president of the Serbian Progressive Party (SNS), was named governor of the National Bank of Serbia.

Serbia has appointed a lawmaker from the country's ruling coalition as governor of its central bank.

Parliament endorsed Jorgovanka Tabakovic, a senior member of the co-ruling Serbian Progressive Party, to replace Dejan Soskic, who resigned last week over a law stepping up government control over the bank.

The law, adopted on August 4, creates a powerful, parliament-appointed supervisory body to be represented on the bank's executive board and gives the assembly responsibility for appointing its entire top management.

The EU has cautioned Serbia that the law is a "step backward" on its path to membership if it tries to undermine the bank's autonomy.

The International Monetary Fund said the law would have consequences for a frozen $1.23 billion standby loan deal.

Based on reporting by AFP and Reuters