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8 August 2012

Serbian Central Bankers Resign as S&P Downgrades Credit Rating

Three members of Serbia's central bank have resigned in a growing crisis over the independence of Belgrade's monetary policy under a new Socialist-led government.

The resignations came from three out of five members of the bank's Council of Governors -- including Council President Bosko Zivkovic.

During the past week, central bank governor Dejan Soskic and Vice Governor Bojan Markovic also resigned.

Standard & Poor's on August 7 cut Serbia's sovereign debt rating, knocking it down one notch to double B minus, in part, as a reaction to the Socialist-led government's tightened grip on the central bank in defiance of EU and IMF criticisms.

It also put Serbia on negative outlook because of deteriorating fiscal and external deficits.

After the designation, Serbia's dinar currency fell to a record low against the euro.

Based on reporting by Reuters and AFP