The CBBH Will Mint Coins иn Denominations оf 5 Fening аnd 5 KM

The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) has made the decision on minting of coins in denominations of 5 fening and 5 KM. This decision was made during the Session held today, April 28, 2005, in Sarajevo.

For some time there has been a need to mint and put into circulation the coin in a denomination which is smaller than 10 fening. By minting and putting into circulation coins in denomination of 5 fening, the CBBH would improve the consumers' protection, since the practice by now has shown that stores are rounding of the prices at the expense of end buyers. Production of 20 million pieces would satisfy the need for this denomination in circulation.

5 KM banknotes were printed in 1998, and since they are in circulation for the extensive period of time, they are of poor quality. The minting of five million pieces of coins in denomination of 5 KM would satisfy the need for the first quantity intended for gradual replacement of banknotes with coins of this denomination.

In order to produce coins in denominations of 5 fening and 5 KM, a tender will be announced in order to select the best bidder. After that, the Governing Board of the CBBH will make the decision on the design of coins, with the approval of the Presidency of Bosnia and Herzegovina.

The Governing Board of the CBBH has accepted the CBBH Financial Report and the Report on the implementation of the Financial Plan of the CBBH for the first quarter of 2005. According to these reports, the realized income for the first quarter of 2005 is by 8, 09% higher than plan, expenditures are by 10, 43% lower than planned and the CBBH profit for the first quarter is by 38, 83% higher than planned.