CBBH Supports the Decision of the High Representative

The Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Peter Nicholl said that he supported the decision of the High Representative Paddy Ashdown to try to sell Hercegovacka Banka.

"The CBBH has not been involved in the provisional administration of Hercegovacka Banka", Mr. Nicholl said.

The Governor had read the Report of the Provisional Administrator Toby Robinson. That Report showed that the abuses and problems in the Bank were so widespread that the option of recapitalising and restructuring the Bank was not feasible or appropriate.

"The banking system in Bosnia and Herzegovina is improving and expanding rapidly. This should make it possible to sell parts or all of Hercegovacka Banka to other banks. This should give a better outcome than liquidating the Bank", Mr. Nicholl said.

"But if the sale process is not successful, liquidation will be the only other outcome", he concluded.