British Ambassador Visited CBBH

Ambassador of Great Britain in Bosnia and Herzegovina Matthew Rycroft and Director of the Office for the International Development (DFID) in the British Embassy in Sarajevo Mary Shockledge have visited today, July 25, 2005, the Central Bank of Bosnia and Herzegovina, where they met with Governor Kemal Kozarić, member of the CBBH Governing Board Peter Nicholl, Main Internal Auditor Ankica Kolobarić and Vice Governor Ljubiša Vladušić.

On that occasion, guests had the opportunity to be informed on the systems of work which are implemented in the CBBH. Governor Kozarić explained that for its work the CBBH is responsible to the BH Presidency and through the Presidency to BH Parliament, but he stressed that in its work the Bank is independent from everyday politics, and that no political pressures on the CBBH had been recorded so far. It was stressed that there was a high level of agreement with representatives of authorities on how to run the State's monetary policy. "I think that all BH authorities support the Currency Board Arrangement, which has produced excellent results so far", Kozarić said and added that such monetary policy has produced stability and low inflation. Kozarić added that foreign reserves were constantly increasing and that they had reached KM 3, 67 billion, but all economic indicators did not look so good. "Large foreign trade deficit and high unemployment rate which is 40%, according to the official statistics, are worrying", Kozarić said.

Governor Kozarić also used the opportunity to inform the British Ambassador on negotiations which BH Delegation recently had with the representatives of the International Monetary Fund (IMF). He stressed that if the Law on Fiscal Council was adopted by the end of September, BH could have the new Stand By Arrangement as early as in October. Kozarić said that he was pleased with the fact that the CBBH had played the positive mediating role between the BH authorities and the IMF representatives, adding that the signing of the Stand By Arrangement would be the clear signal to potential investors. "This is the positive sign that BH authorities are ready to take over and fulfill obligations", Governor said.

One of the issues which the British Ambassador was especially interested in, is the situation with statistics in BH. Kozarić stressed that over the last several years the CBBH had developed its statistical capacities, but the joint position in the CBBH is that it is now necessary to direct everything towards the development of the State Statistics in order to obtain as reliable data as possible. "Foreign investors often come across distorted, even fully inaccurate image of BH economy, which is extremely damaging", stressed Member of the CBBH Governing Board Peter Nicholl.

Ambassador Rycroft said that he is extremely pleased with the successes which the CBBH has achieved in its work and offered his assistance in providing future appropriate trainings for the CBBH employees, who by now also receives a large help from the British institutions, especially the Bank of England.

Public Relations Section
Almir Salihović