CBBH Paid A Part Of The Profit Into The Budget Account Of BH Institutions 4/5/2018 Tweet Sarajevo, April 5, 2018 On April 5, 2018, the Central Bank of Bosnia and Herzegovina (CBBH) paid the amount of KM 7,311,129.83 into the budget of the BH institutions pursuant to the Decision of the CBBH Governing Board on the allocation of net profit, which the CBBH made in 2017. The net profit of the CBBH for 2017 amounts to KM 12,185,216.39. Out of this amount, in accordance with Article 27 of the Law on CBBH, 60% or KM 7,311,129.83 was transferred to the budget of the Bosnia and Herzegovina institutions, while 40% or KM 4,874,086.56 was allocated in the CBBH general reserves. In the past few years, the CBBH operations have been subject to constant pressure of interest expenditures from the negative interest rate on deposits with foreign banks in the euro area. The eurozone’s financial markets have been for a long period of time, reflecting negative and low yields on government bonds of the countries in our investment spectrum, and extremely negative interest rates on time deposits and sight deposits with foreign banks. The uncertain and negative market trends along with the legal framework for investing foreign exchange reserves of the CBBH have inevitably affected the process of managing foreign exchange reserves and the amount of investment income, and the CBBH is facing more and more difficulties to achieve the positive financial result. The profit realized for 2017 is the result of a rational management policy of the CBBH, which in 2017, fulfilled its legal mandate to maintain monetary stability, with the rational use of resources. The CBBH still succees, in times of negative interest rates on the eurozone market, to achieve a positive financial result, although the primary objective in central banking is not to have the profit, but to maintain monetary stability.
