Powers Nabiullina extended for five years


© RIA Novosti / Sergey Pyatakov

Powers, Elvira Nabiullina on a post of the Chairman of Bank of Russia from June 24 extended for a period of five years.

Nabiullina, who previously held the posts of Minister of economic development and assistant to the President, headed the Bank of Russia on 24 June 2013, succeeding Sergei Ignatiev, who led the Central Bank a little more than 11 years.

In his speech in the state Duma re-election in early June, Nabiullina noted that in 2013 “life has changed” and because of the deterioration of external negative factors on the first work plan of the Central Bank came to the task of ensuring financial stability.

Nabiullina faces in the next five years, the challenge of achieving in Russia is low and stable inflation, completion of the process of recovery of the banking system, development of financial services in the areas of pensions and insurance.

During the work of the Central Bank Nabiullina has been criticized by a number of deputies and businessmen for monetary policy, including devaluation of the ruble in 2014, and the slow reduction of the key rate. In addition, the object of criticism was started under Nabiullina in 2013, the so-called “clearing” of the banking sector, which resulted in the number of banks in Russia declined by about a third.

However, Russian President Vladimir Putin has publicly expressed support for the policy pursued by the Central Bank under the leadership of Nabiullina. To the merits Nabiullina could be considered a merciless fight against inflation. So, last year the growth of consumer prices slowed to a historically low level of 5.4%. It was under Nabiullina began in full force to implement the mechanism of inflation targeting, and now inflation is already close to the target level of 4%.

On March 22, Putin presented the candidacy of Nabiullina in the state Duma to prolong powers. Under the current law “About Bank of Russia”, Chairman of the Central Bank is appointed by the state Duma for a term of five years by a majority of votes from total number of deputies. And the candidate is the President of the Russian Federation not later than three months before the expiry of office of the incumbent head of the Central Bank. The state Duma on June 9 extended the powers of the Chairman of the Central Bank for a period of five years. Thus one and the same person cannot hold the position of Chairman of the Bank of Russia more than three consecutive terms. Earlier, the head of the Central Bank was appointed for four years.