by d-3509 » Wed Nov 29, 2000 8:08 pm
Bloomberg, 11/29 08:41 . Rocker Dinkic Takes Helm at Central Bank: Profile . Jelena Radulovic . . Nov. 29 (Bloomberg) -- When Yugoslavia's new central bank governor Mladjan Dinkic isn't formulating policy or tracing funds he says were . out of the country by the former regime, he's playing guitar with his rock band, Monetary Strike. . 36-year-old economist rose to prominence as a critic of former President Slobodan Milosevic in 1997, when he formed the G- 17 group of opposition . In 1998, he published a critique of Milosevic policies called ``The Economics of Destruction,'' and gained popularity because of his ability to . complex issues in plain language. After Milosevic was driven from office last month, Dinkic became a key adviser to President Vojislav . . is a human bulldozer, someone capable of cleaning up the piles of trash at the central bank,'' said Milos Markovic, editor of the Belgrade-based . magazine. ``He is a man of strong will and enormous energy.'' . said his main goals are to help Yugoslavia rejoin the International Monetary Fund and other international financial institutions, and to keep the . value steady at the current level of 30 to the deutsche mark. He has served as acting central bank chief since October. He was confirmed by a . of 73 in the 138-seat lower house of parliament and by 29 votes in the 40-seat upper house. . the parliament session before his confirmation late yesterday, Dinkic said he wants to increase Yugoslavia's foreign currency reserves to a level equal . about three months of imports. October imports totaled $212 million. The central bank also will take a more active role in the short-term securities . and start to lower interest rates, he said. The bank also will aim to eliminate restrictions on converting dinars to make trade and other . payments. . Goals . next goal is an introduction of convertibility of the dinar in all current account transactions,'' Dinkic said after parliament's vote. ``That would mean . elimination of the black market rate of the currency.'' . Milosevic, hyperinflation eroded the dinar's value as the country started, and lost, a series of wars in the region. In January 1994, the monthly . rate reached 313 million percent. . mass protests forced Milosevic from office following his defeat in the Sept. 24 presidential election, Dinkic said that Milosevic's associates tried to . at least $22.5 million from the central bank out of the country, in cash and via electronic transfers. He said he shut down the central bank's . to thwart the thefts. . on Milosevic . also called for Milosevic and his allies to face trial, after Kostunica had said he wouldn't extradite the former president or other indicted war . to the War Crimes Tribunal in The Hague. . Sept. 24, you chose to live in a country in which the best would rule and the worst would be in prison,'' Dinkic said at a Belgrade rally on Sept. 27. . has at most a week to leave the country, or he will have to face court, and I don't mean the one in The Hague.'' . shook a baby's rattle while talking to the 200,000-strong crowd, a symbolic gesture meaning Milosevic was ``broken like a baby's rattle,'' a common . expression to describe something as defective. . was born in 1964 into a middle-class Belgrade family, the child of two well-known economists. In `The Economics of Destruction,'' Dinkic wrote . dinnertime conversations at home often focused on economic issues. In the book, he quotes extensively from Western economists such as John . Galbraith, and argues that Yugoslavia's economy under former dictator Josip Broz Tito, often called the communist bloc's most successful, . was a house of cards kept afloat by the West. . Account . studied economics at Belgrade University and later taught there. Last year, a month after the North Atlantic Treaty Organization's bombing of . ended, Dinkic published ``Final Account,'' a study of estimated war damages. . full extent of damage inflicted on Yugoslavia's economy by Milosevic's government still is unknown, Dinkic said. Recently, he said he's concerned . gold reserves of the former Yugoslavia held at the Bank for International Settlements in Basel, Switzerland may have been looted. . wasn't able to determine whether the gold is there simply by looking through the central bank documentation,'' said Dinkic. ``So I will go to Basel, . the bank treasury and find out on my own if the gold is there.'' . to a formula determined by the IMF, 46 tons of former Yugoslavia's gold reserves should be divided between the existing Yugoslav federation, . of Serbia and Montenegro, and Croatia, Slovenia, Bosnia and Macedonia. . challenge for Dinkic will be to establish a new payment system between Yugoslavia's two republics, Serbia and Montenegro, he said. . stopped using the Yugoslav dinar earlier this month, ending a dual currency system in which it was used along with the deutsche mark. The . Yugoslav republic, which also formed its own central bank on Nov. 2, will use the deutsche mark exclusively as its currency. . the next three months one of the goals is to establish payment operations between Serbia and Montenegro together with the federal government . the governments of the republics,'' Dinkic said. . President Milo Djukanovic has refused to mend ties with Belgrade after the change in power, insisting the two republics first separate and . independent states and then create a monetary union and take joint control of the army. . the federal parliament, Montenegro's opposition Socialist People's Party deputies said they voted for Dinkic because they wanted to see the central . perform its duties across Yugoslavia, including Montenegro. Their vote was considered key in the parliamentary vote, analysts said. . is married, with no children. His band, which has one CD - also named Monetary Strike - played its last gig at a pre- election rally.