SERBIA, MONTENEGRO DIVIDE MONETARY AND BANKING SYSTEMS

BELGRADE/PODGORICA, July 10 (Hina)- The Montenegrin government has adopted a document for the further implementation of the Belgrade Agreement and adjustment of the Serbian and Montenegrin economic systems with the European Union system. The document envisages separate monetary and banking systems in the future Serbian- Montenegrin community, the Belgrade media said on Wednesday quoting reports from Podgorica. #L# The future Serbian-Montenegrin union will be financed from the budgets of its member-states and will not have its own property or seek loans. It will include two completely separate monetary systems, two central banks, and two currencies. The Yugoslav National Bank will be renamed into the Central Bank of Serbia and the federal customs will be called the Serbian customs administration. This is the result of an agreement reached in negotiations between expert teams from Serbia and Montenegro headed by the finance ministers. In the initial phase, many elements maintaining the current situation and mechanisms will be retained. Those mechanisms should be adjusted to the EU system within three years. The adjustment process, which is aimed at admission to the EU and international financial institutions, includes changes to customs, taxes, and the foreign trade regime, as well as the removal of barriers to internal trade and payment operations. The union will have five ministries (for foreign affairs, defence, foreign economic relations, internal economic relations, and the protection of human and minority rights), which will co-ordinate the work of the bodies of the member-states and represent the community before the international community. It was also agreed that Serbia will appoint the governor and representatives to the International Monetary Fund and the World Bank, while Montenegro will appoint their deputies. (hina) sp rml