Visit of the CBBH Delegation to the IMF Ends

With the final meeting with the First Deputy Managing Director of the IMF Ann Krueger, which was held June 15, 2005, the Delegation of the Central Bank of Bosnia and Herzegovina (CBBH), led by Governor Kemal Kozarić, ended its visit to Washington, where, during three days, it met the highest-ranking IMF officials. The main topic of discussions was the possibility of continuation of negotiations on the new Stand By Arrangement and meetings were also used as the opportunity to inform the IMF representatives on the latest macroeconomic indicators for BH.

"I think that these discussions were beneficial for the CBBH and governments in BH, since, among other things, we also discussed the possibility of continuation of negotiations on the new Stand By Arrangement. I think that the highest-ranked officials of the IMF have expressed their readiness for quick ending of these negotiations and that BH should get the Stand By Arrangement; they also greeted forming of the Fiscal Council, which should get the formal-legal framework. With it, it would obtain its power, that is, decisions made by the Fiscal Council related to the distribution of financial obligations between entities and the State would be obligatory for all participants in that process", Governor Kozarić said, and added that the IMF representatives asked for installation of the protection mechanism in order to prevent the blockade by any side, since it is provided that all decisions in that Council have to be made unanimously. According to the Governor, fulfilling of this IMF's demand should not represent a problem for BH authorities. "In a letter which the Prime Minister Adnan Terzić sent to the IMF representatives, this possibility was proposed. I am an optimist and I think that we should soon have the continuation of negotiations and signing of the new Stand By Arrangement", Kozarić said and stressed that the significance of signing of the new Stand By Arrangement is even bigger for BH, if we take into account that it represents the message to the foreign investors that BH can fulfill its international obligations.

During the series of meetings, which included meetings with the IMF Mission Chief for BH Peter Doyle, as well as Director of the European Department in the IMF Michael Deppler, the CBBH delegation presented the macroeconomic indexes for the last year and for the first quarter of this year. The IMF representatives also graded positively the CBBH's work. "They evaluated that the transition of authority in the CBBH to the local management has passed without any obstacles and that they are very satisfied with the current situation in the CBBH", Kozarić stressed.

Some technical missions, which will arrive to BH in the fall, were agreed with the IMF representatives. Governor Kozarić sees them as very useful, since those missions provide certain suggestions which are being transformed into procedures improving the CBBH's operations.

"I think that this was very useful and that we should be in contact more often, in order that we can give them first-hand information about the situation in BH, and also that they say to us how they see us and what is their opinion on how BH can go further", Kozarić concluded.

Other members of the CBBH Delegation, besides Governor Kozarić, were the CBBH Vice Governors Ljubiša Vladušić and Feriha Imamović and the Governing Board Member Mila Gadžić.

Public Relations Section
Almir Salihović