Serbia bank governor election worries IMF

BELGRADE, Serbia, Nov. 20 (UPI) -- The International Monetary Fund is concerned over a new procedure for electing Serbia's National Bank governor, an IMF executive said Monday.

In a letter to Serbia's president and prime minister, John Lipsky, deputy IMF director general, said the election procedure passed recently is in conflict with a National Bank law of 2003.

Last week, bank Gov. Radovan Jelasic of the Serbian National Bank sent letters to the European Central Bank and the European Commission complaining the new law violates independence of the national bank and stability of the monetary and financial systems in Serbia.

The new law foresees a governor being elected after Serbia's parliamentary elections Jan. 21, despite the fact the governor is being elected for a 5-year-term to avoid influence of a government, whose tenure is four years.