The Slovak parliament labored hard beginning in February 1993 to write

legislation that would both comply with constitutional stipulations on economic

policy and guarantee central bank independence. Law gave the Bank of Slovakia

the sole objective of currency stability and prohibited it from annual lending to the

government revenue in the previous year, with a three-month limit on

government credit maturities. The law demands that monetary policy be

formulated in conjunction with the government, however. The central bank

governor is subject to presidential recall, but is legally protected from arbitrage

dismissal.