Central Bank Independence in Transition Economies

Central Bank Independence… 

S&A 120 

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the Bank and the Government shall inform each other on their intentions and proposed 

measures (Art. 3). The Board of the Bank usually invites the Government delegate to 

its meeting when taking important decisions. Accordingly, the Government invites the 

Governor to its meetings. The Bank reports on its activity to the Parliament (Art. 1). 

2C. Limitations on Lending 

The NBB can grant short term credit to the Government limited to 5% of the 

budget revenue. The maturity of the credit is limited to three months and the credit has 

to be repaid before the end of the calendar year (Art. 46). The bank may purchase 

Government securities on the secondary market (Art. 33) and on the primary market as 

a part of public issue (Art. 48).