CBBH Governing Board Session Held

During the Session held today, March 31, 2006 in Sarajevo, The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) has adopted the Financial Statements for 2005 and within that, the Decision on distribution of net profit of the CBBH

In the last year, the CBBH made a profit in the amount of KM 38.148.657, 18. After achieving the threshold of 5% relation between monetary liabilities and capital, distribution of profit was carried out, out of which KM 19.665.872, 49 will be allocated to the account of budget of institutions, while KM 18.482.784, 69 will be allocated to the account of the CBBH General Reserves.

The CBBH Governing Board and external auditors have positively assessed CBBH Financial Statements for 2005. The Financial Statements, along with the opinion of external auditor, will be forwarded to the BH Presidency and BH Parliamentary Assembly for adoption.

The CBBH Governing Board has made the decision on purchase of monetary gold. The CBBH is buying monetary gold obtained through the Agreement on Succession Issues in the total amount of 42.352, 167 ounces. Currently, the price of gold is around 583 USD per ounce, so by applying the middle exchange rate of USD for today, March 31, 2006, the value of this gold would be around USD 24.691.313, 36 or KM 39.923.952, 47.

The CBBH will perform purchase of the monetary gold by medium price of gold by applying the middle exchange rate of USD on the day of transaction and that is the day of signing of the Contract between the CBBH and the BH Ministry of Treasury and Finance.

Regarding the above, the CBBH Governing Board has also adopted the changes of Guidelines on investment of foreign reserves, according to which the foreign reserves can be also held in gold.

Also adopted during the Session was the Decision on establishing of the Central Registry of Loans of Business Entities in BH that have loans in commercial banks. The CBBH, the Banking Agencies and banks will be users of this Registry.

The United States Agency for International Development (USAID) has helped the establishing of the Registry with 60% of funds. Presentation of the Registry for the CBBH employees and commercial banks will be held on April 5, 2006. This Registry will become operational on April 13, 2006.