CBBH's Results for the First Six Months of 2004

The Governing Board of the Central bank of Bosnia and Herzegovina (CBBH) at its meeting in Mostar on 6 August, 2004 considered reports on the operational and financial results of the CBBH for the first half of 2004.
During this six month period, the CBBH's income was KM 31.8 million, which was KM 1.1 million higher that budgeted. Most of the CBBH's income (90%) comes from investment income on the foreign reserves held by the CBBH. The CBBH's expenditure was KM 17.5 million, which was KM 1.2 million below the budgeted level. As a consequence of these favorable outcomes for both income and expenditure, the CBBH made a profit of KM 14.3 million in the first half of 2004, which was KM 2.36 million, or almost 20%, higher than budgeted for this period.
One other noteworthy feature of the CBBH's financial results for the period was that the level of its foreign reserves at 30 June 2004 was KM 3.169 billion. This was KM 388 million higher than at 31 December, 2003. The CBBH's foreign reserves increased by a further KM 128 million in July. This shows that even though BiH has a high current account deficit, it is not being financed by running down the country's official foreign exchange reserves.
The Governing Board also discussed a report on the implementation of the CBBH's Strategic Plan in the first six months of 2004 and expressed their satisfaction with the performance of the staff during this period.
As well as all the regular operations of the CBBH continuing to be carried out efficiently and effectively, the CBBH implemented a number of special tasks during this period. These included the administration and financing of the first sovereign credit rating for BiH, the organization and financing of the first meeting of the IMF/World bank Constituency to be held in BiH, the successful introduction of a country-wide Registry for bank accounts, the opening of new office buildings for the Bank's Main Units in Mostar and Sarajevo, and the publishing of the first book to be published by the CBBH.

Public Relations Section
Coordinator
Zijada Kulović