Governor Softić: The CBBH continues undertaking the measures according to the ECB decisions

The Report of the International Monetary Fund (IMF) „Regional Economic Outlook for Europe“, which includes the latest developments, projections and risks for future outlook in Europe and in BH, was presented in the premises of the Central Bank of Bosnia and Herzegovina (CBBH) on 09 November 2022.

In the introduction, Governor of the CBBH, Senad Softić, Ph.D., stressed a good cooperation with the IMF and willingness to participate in all joint efforts to find better outlook for the future of BH economy.

“In order to support economy and citizens of Bosnia and Herzegovina, the CBBH, according to its authorities, has undertaken and will continue undertaking appropriate measures according to decisions of the European Central Bank (ECB). It is important to stress a coordinated work of the Entity Banking Agencies. I believe that commercial banks will give their contribution through appropriate lending policies, including interest policies and policies of banking services“, Governor Softić said.

Resident Representative of the IMF in Bosnia and Herzegovina Andrew Jewell commented on economic outlook for Bosnia and Herzegovina, stating that “BiH is facing significant challenges from high food and fuel prices and tighter financial conditions. A key challenge for policymakers will be to better target fiscal support to the vulnerable to alleviate the impact of the cost-of-living crisis while minimizing budget pressures." Mr. Jewell also emphasized that financial sector stakeholders in BiH need to be prepared for the impact of rising interest rates on borrowers and lenders alike.

Following presentation of the findings of the report, Gabriel Di Bella, Deputy Division Chief at the Emerging Economies Unit of the IMF’s European Department, Belma Čolaković,Ph.D., Head of the Office of Chief Economist of the CBBH, and Economic Analysts Svetlana Cenić and Faruk Hadžić, among other, participated in the discussion.