ZAGREB, Dec 7 (Hina) - The Croatian government on Thursday sent into parliamentary procedure a bill on the Croatian National Bank (HNB) regulating the status, activities and organisation of the central bank and its relationship to the
state, banks and international institutions. The main goal of the new bill, it was said at the session, is for HNB's status, activities and organisation to be adjusted to the needs of a developed market economy. The bill, it was said, envisages a relatively high degree of autonomy and independence of the HNB. The bank's basic goals are achieving and maintaining the stability of prices and maintaining the liquidity and solvency of the market-oriented banking system. The new bill regulates that the HNB independently defines and implements the monetary and foreign currency policy in the country, holds and manages the state's international reserves, issues and revokes approval
ZAGREB, Dec 7 (Hina) - The Croatian government on Thursday sent into
parliamentary procedure a bill on the Croatian National Bank (HNB)
regulating the status, activities and organisation of the central
bank and its relationship to the state, banks and international
institutions.
The main goal of the new bill, it was said at the session, is for
HNB's status, activities and organisation to be adjusted to the
needs of a developed market economy.
The bill, it was said, envisages a relatively high degree of
autonomy and independence of the HNB. The bank's basic goals are
achieving and maintaining the stability of prices and maintaining
the liquidity and solvency of the market-oriented banking system.
The new bill regulates that the HNB independently defines and
implements the monetary and foreign currency policy in the country,
holds and manages the state's international reserves, issues and
revokes approvals for the operation of banks, controls their
operation, regulates, improves and controls the payment system
etc.
The cooperation between the HNB and the government would, according
to the new bill, develop toward partnership. The bill keeps HNB's
obligation to support government's economic objectives without
jeopardising its own basic goals. On the other hand, authorised
government ministries would advise with the HNB and inform it about
their debts and measures and laws closely related to the bank's
scope of operation.
The bill includes a novelty which refers to the prohibition of any
direct form of financing of the state.
That novelty, it was said, springs from the obligation to separate
the monetary from the fiscal policy. Under the current law, the HNB
can grant the state short-term bridging-over loans, amounting to
five percent of the budget for the current year at the most.
The bank's governor and external members of the HNB Council, of whom
there can be eight at the most, would be elected at the proposal of
the parliamentary speaker. The new bill defines more precisely who
can be a member of the Council, limits conditions for a member of the
Council to be relieved of duties before the completion of his
mandate etc.
The parliament was also sent a bill on changes to the Law on the
Foundations of the Foreign Currency System and Operations, which
would partly liberalise foreign currency operations, and a bill on
changes to the Law on Housing Saving and State Incentives for
Housing Saving.
(hina) jn rml