At the sitting held on 17 September, the members of the Finance Committee considered the 2010 Financial Plan Proposal of the State Audit Institution, Ministry of Finance Report on the Execution of the Republic of Serbia Budget for the period January-June 2009, Budgetary Inspection 2008 Annual Activity Report, National Bank of Serbia Report on Business transactions and results and monetary policy for 2008, National Bank of Serbia 2008 Annual Statement and Deposit Insurance Agency’s 2008 Activity Report.

The sitting was chaired by Zoran Krasic, Committee Chairman and attended by Radoslav Sretenovic, President of the Council of the State Audit Institution and associates, Mira Eric-Jovic, Vice-Governor of the National Bank of Serbia and associates, representatives of the Ministry of Finance, Milorad Dzambic, Director of the Deposit Insurance Agency and representatives of the Budgetary Inspection.

Radoslav Sretenovic, President of the Council of the State Audit Institution, presented the SAI 2010 Financial Plan Proposal to the Committee members. He stated that the SAI proposed over 155 million RSD worth of funds, which is 15% more than in 2009, adding that the bulk of the amount constitutes employees’ salaries. He informed the Finance Committee that the issue of SAI offices has been satisfactorily resolved, adding that the SAI currently employs 22 persons, and plans to recruit additional 40 people by the end of the year. In 2010, additional 18 people should be employed, so that by the end of 2010 the SAI would employ 80 people, 70% of which would be auditors.
Following a discussion, the Committee members unanimously endorsed the 2010 Financial Plan Proposal of the State Audit Institution.

In the continuation, the representatives of the Ministry of Finance presented the Ministry of Finance Report on the Execution of the Republic of Serbia Budget for the period January-June 2009 and Budgetary Inspection 2008 Annual Activity Report. The budgetary returns in the first half of the year amount to 281.7 billion RSD, expenditure 336.9 billion RSD, and debt repayment to the creditors 32.9 billion RSD. Last year, the Budgetary Inspection controlled a large number of budgetary beneficiaries, and the structure of the implemented controls encompassed budgetary beneficiaries on all levels, from ministries to schools and local self-governments. The Budgetary Inspection controls the work of over 9 000 budgetary beneficiaries.

NBS Vice-Governor Mira Eric-Jovic briefly outlined the National Bank of Serbia Report on Business transactions and results and monetary policy for 2008 and National Bank of Serbia 2008 Annual Statement for the Committee members. She listed all the measures the NBS implemented in the previous year to suppress the impact of the global economic crisis and the measures aimed at preserving macroeconomic stability and the banking sector. She also emphasised the importance of the Agreement between NBS and 10 of the biggest banks who pledged to conserve their total exposure in the next two years, including cross-boarding credits. The banking sector is still very liquid, with about 5.3 billion EUR worth of savings. NBS submitted its 2008 Annual Statement to the National Assembly, audited by Deloitte on grounds of public purchase, who gave a positive estimate of the NBS balance.

Milorad Dzambic, Director of the Deposit Insurance Agency, presented the institution’s 2008 Activity Report, stressing that the total insured deposit amounted to 7.8 billion, 69% of which were deposits made by physical entities. RSD deposits make up 23%, and 77% are foreign currency deposits. The Agency made about 22 million EUR from the insurance premiums and the fund boasted 75 million EUR at the end of last year. The Agency is conducting bankruptcy and liquidation proceedings of 20 banks and 16 insurance companies.