Agreement on the Foreign Debt Servicing and Agreement on Performing of the Banking and Fiscal Agent Operations Signed With Ministry Treasury of BH Institutions

Today, July 6 2001, the Governor of Central Bank of BH Peter Nicholl and Deputies of Treasury Minister of BH Institutions, Gordana Kobic and Muharem Imamovic signed the Agreement on the Foreign Debt Servicing and Agreement on Banking and Fiscal Agent Operations.

According to the Law on CB BH, Law on the Foreign Debt Servicing and Law on Treasury of BH Institutions, the Treasury Ministry of BH Institutions with these agreements is authorize the Central Bank of BH to perform the agent operations on behalf of the Ministry.

The Governor especially emphasized the significance of the Agreement on the Foreign Debt Servicing, the main purpose of which is to define role of the CB BH, Treasury Ministry and Ministries of Finances of BH Entities. He said that regularly repayment of the foreign debt would be ensured on that way and BH Treasury Ministry of BH Institutions is responsible for the regularly repayment of the BH foreign debt and CB BH has only the function of the agent, which will perform the payment of foreign debt by the instructions of BH Treasury Ministry. Muharem Imamovic, Deputy Treasury Minister and signatory of the Agreement on the Foreign Debt Servicing emphasized that Treasury Ministry of BH Institutions assumed the main role in realization of the total budget flows of BH, but without CB BH and unified system and account, the Treasury Ministry of BH Institutions that process can not realize. He added that total BH foreign debt is 4,3 billion and financial obligations of BH in 2001, are in amount of 220 million marks.

Gordana Kobic, Deputy Treasury Minister and signatory of the Agreement on Performing of the Banking and Fiscal Agent Operations expressed its satisfaction with this signing, as well as hope that these agreements will contribute to faster implementation of the donated funds or loans from the foreign governments and international financial institutions.

"The Central Bank of BH is looking forward to a very successful cooperation with Treasury Ministry of BH Institutions, ensuring good reputation of the CB BH in servicing of the BH foreign debt as precondition for getting the good credits", concluded Governor Nicholl upon signing of these agreements.