International Relations Department Belgrade, September 28 TH, 2007 NBS PROJECT PROPOSALS

NATIONAL BANK OF SERBIA Autonomous and independent institution Primary objective –Maintaining Price Stability In addition, –Maintaining Financial Stability –Without prejudice to its primary objective, NBS shall support the pursuance of economic policy of the Government of the Republic of Serbia, operating in accordance with the principle of market economy

THE ROLE OF NBS IN EU INTEGRATION NBS actively participates:  In the negotiations related to the signing of Stabilization and Association Agreement, in the Task forces established by the Government of the RS for: liberalization of capital movements contracting of financial protocol and financial services  In the work of the RS Commission for the EU accession coordination  In the institutional cooperation with the EU through the Enhanced Permanent Dialogue All activities are carried out in strong cooperation with EU Integration Office of the Republic of Serbia

EUROPEAN PARNTERSHIP Pursuit of sustainable macroeconomic policy Further implementation of prudent monetary policy with the appropriate exchange rate policy Monitoring of rapid credit expansion Further liberalization of capital movements Restructuring and privatization of the insurance sector

THE FIRST PROJECT PROPOSAL

PROJECT TITLE Strengthening of institutional capacities of the National Bank of Serbia through implementation of the Acquis communautaire and harmonization of the activities with European standards

BENEFICIARY – NBS Bank Supervision Department Insurance Supervision Department Pension Fund Supervision Department Legal Department International Relations Department Foreign Exchange Department Monetary System and Policy Department Research Department Center for Financial Services Consumer Protection and Market Supervision

OVERALL OBJECTIVE The improvement of institutional capacities, activities and efficiency of National Bank of Serbia Successful harmonization of NBS operations with European standards and requirements of the ESCB RESULT

SPECIFIC OBJECTIVES – EXPECTED RESULTS 1.Strengthening supervisory function 2.Harmonization of legislation under competence of NBS with EU acquis communautaire Efficient and improved consolidated supervision in banking, insurance, pension and financial leasing sectors Harmonized and implemented legislation

SPECIFIC OBJECTIVES – EXPECTED RESULTS 3.Liberalization of capital movements 4. Improvement of FX reserve and investment risk management Accurately defined medium- term strategy for full liberalization of capital flows and established legal and technical framework Improved FX reserve management via modernization of software and strengthening of analytical skills

SPECIFIC OBJECTIVES – EXPECTED RESULTS 5.Improvement of information system for efficient money trading between NBS and banks on domestic and foreign markets 6. Improvement of balance of payment statistics through efficient compilation of data on remittances Implemented information system and ensured efficient transactions Improved statistics for determining the impact of remittances on macroeconomic movements

SPECIFIC OBJECTIVES – EXPECTED RESULTS 7. Improvement of education of financial services beneficiaries and transparency of financial services 8.Capacity building in the field of EU funds project management Increased awareness and knowledge about financial services and efficient protection of their rights Acquired knowledge and expertise on the EU funds project management

CONTACT PERSONS Zoran Nišavić Ivana Vasić

THE SECOND PROJECT PROPOSAL

International Relations Department International Organizations and European Union Division Coordination of all activities related to the process of accession to the European Union in NBS Preparation of relevant documentation and data in accordance with the priorities of the European Partnership under competence of NBS and other relevant strategic documents of RS Coordination of activities with a view to the identification of the needs of the NBS for the use of funds of the instruments of pre–accession assistance of the EU BENEFICIARY

PROJECT TITLE Capacity building of the National Bank of Serbia in the area of the European integrations coordination

OVERALL OBJECTIVE Strengthening of capacities and efficiency of the organizational unit responsible for the coordination of the process of EU integration within National Bank of Serbia Timely performed, efficient and smooth institutional preparation of NBS in the process of EU accession RESULT

SPECIFIC OBJECTIVES – EXPECTED RESULTS 1. Capacity building 2.Strengthening of institutional links with counterpart units in other central banks 3.Strengthening of infrastructural capacities Acquired expertise : Process, tendency and challenges on the road to EU Functioning of relevant financial, economic and monetary EU institutions Research, analyses and papers Established institutional cooperation with counterpart units in central banks Improved infrastructural capacities

CONTACT PERSONS Nevena Petrović Igor Savić

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