CHAMBER OF DEPUTIES COMMITTEE REJECTS SENATE'S AMENDMENTS National Bank Will Stay In Control Of Its Budget

The Chamber of Deputies Committee on Budget, Finance & Banks on Tuesday evening rejected senatorial amendments to the draft law regulating statute of The National Bank of Romania (BNR). The deputies decided that BNR's budget should be approved by BNR's Board and not by Parliament, as previously stipulated in The Senate's version of the draft. The deputies also decided that BNR's commercial operations should be audited by The Court of Audit, as stipulate din the initial version of the draft proposed by The Government. The deputies therefore rejected the senators' amendment according to which The Court of Audit should audit all of BNR's expenses, including those related to monetary policy.

"The Senate's amendments were not passed because they would have constituted a grave violation of European Community directives on the revenue & expense budget of central banks," PRM Deputy Stefan Baban, a member of The Chamber of Deputies Committee on Budget, Finance & Banks told "Bursa."

"The deputies decision is a positive one as it helps harmonize BNR's statute to the acquis communautaire," BNR first deputy governor Emil Iota Ghizari told "Bursa."

The Senate last week adopted several amendments to the draft law on BNR's statute proposed by The Government. Stipulations that BNR's budget should be approved by Parliament or that The Court of Audit should audit BNR's expenses sparked vehement reactions by BNR officials, who commented that The Senate's amendments were undermining BNR's independence. The senators that proposed the amendments later said that only the administrative expenses of BNR should be approved by Parliament and audited by The Court of Audit.