Governor Softić Attends the Economic and Financial Dialogue in Brussels 5/23/2017 Tweet May 23, 2017 Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Senad Softić, Ph. D. is in Brussels, where he is attending the ministerial meeting on regular annual Economic and Financial Dialogue between the European Union and the countries of Western Balkans and Turkey. Today's meeting in Brussels represents the completion of consultation and supervision process of three year programs of economic reforms. This process enables the candidate countries and potential candidate countries from the Western Balkans and Turkey to have dialogue and joint conclusions with EU institutions on economic, fiscal and structural measures in very similar manner which is used in the case of the EU member countries (so-called European Semester). The countries of Western Balkans and Turkey are represented by finance ministers and central bank governors, while the EU is represented by the finance minister of Malta, which currently chairs the EU Council and by two other ministers from countries which will chair the EU Council in the future (Estonia and Bulgaria). While discussing the reform process, Governor Softić welcomed the continuation of dialogue between the BH authorities and EU representatives, stressing that BH has strong economic and financial relations with the EU and that the further integration of the country will depend on the coordination and understanding of economic policies and structural reforms. He stated that in the previous period the authorities have undertaken a number of activities aiming to maintain macroeconomic stability and improve the business environment in the country. „We should highlight the implementation of the Reform Agenda, which includes number of activities with aim to improve the business environment, to solve the problems regarding the labor market and create the framework for sustainable public finance. There were also activities on arranging and implementation of economic measures within the framework of the new program with the International Monetary Fund (IMF), which are also directed towards public finance sustainability and financial stability; we need to add that BH authorities are in the process of responding to the EU Questionnaire, which is, to a large extent, dedicated to economic policies“, Governor said, adding that all the stated activities were undertaken in accordance with the recommendations stated in the Economic and Financial Dialogue and he expressed hope that, despite a large number and volume of tasks, those activities will be completed successfully and relatively soon. During his speech, Governor Softić also commented on the economic trends in the previous period and stated that BH economy shows signs of recovery. Considering the positive trends in the neighboring countries, it is expected that economic growth and investments will continue the upward trend in 2017, with low inflation, as well as with the Currency Board Arrangement, which remains the pillar of stability in our country. The financial sector has remained stable. The banking sector shows a higher level of capitalization and profitability level, with the latest indicators showing higher credit expansion, which is especially encouraging. It is expected that the number of structural reforms, through the creation of new jobs and improvement in business environment, will influence the unemployment reduction. Governor added that the CBBH, in accordance with its mandate, will continue to provide the institutional framework for the maintenance of monetary and financial stability, working on the strengthening of banking coordination and the role of the Standing Committee for Financial Stability; it will continue to improve the payment system operations as well as Single registries, provide timely and detailed statistical data, and it will continue with active role of the institution in the EU integrations process. Governor Softić concluded his remarks by thanking the EU institutions for their continuous support with the expectation that the dialogue with the EU institutions will continue to have the key role in the process of defining of economic policies and legal and institutional reforms with the goal to achieve the harmonization in the country.
