Central Bank Independence in Transition Economies

11C. Limitations on Lending 

The CBR may not grant credit to finance the budget deficit nor buy the 

Government securities on the primary market, except cases when such financing is 

predicted in the budget law (Art. 22). In the law of 1990 the Bank was allowed to 

cover temporary deficits between revenues and expenditure (Art. 17). The maturity of 

this credit was limited to six months and the limit on the amount of the credit was set 

by the Parliament. 

11D. Banking Supervision and Exchange Rate Policy 

The Bank sets the official exchange rates (Art. 52) and supervises commercial 

banks (Art. 55). 

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Central Bank Independence… 

S&A 120 

49

 

12. Slovak Republic

14

 

The National Bank of Slovakia (NBS) was established in January 1993 and is the 

successor of the State Bank of Czechoslovakia in Slovak Republic. The Bank is 

operating under the law on the National Bank of Slovakia of November 1992.