Income of the Central Bank in the First Quarter Higher than the Planned one New System of the Cash Storage and Distribution

According to the financial report of the Central Bank of BH, for the first quarter of 2001, the income of the Central Bank was higher than the planned one. This is stated at the session of the Governing Board of the Central Bank of Bosnia and Herzegovina, held on April 25, 2001 (Wednesday in Sarajevo). The session was attended by the members of the Governing Board Jure Pelivan, Kasim Omicevic, Manojlo Coric and the CBBH Governor Peter Nicholl, who presided the session.

Main reason for making higher income than the foreseen one are the higher interest rates in European banks, in which Central Bank keeps its foreign reserves. Expenditures for the first quarter of 2001 were in line with the budget. As a consequence of these trends in income and expenditures is incured profit, which is higher than it was anticipated.

Governing Board of the Central Bank discussed about the next stage of the reform of cash storage and distribution system in Bosnia and Herzegovina. Governing Board agreed that the distribution of cash for commercial banks will be done through Main Units of the Central Bank. During last four months Central Bank used, for the needs of cash storage and distribution, the vaults of the Agencies for the financial services from Sarajevo, Mostar, and Banja Luka (former payments bureaus).

Governing Board also discussed about the offers of the tender for printing of KM 200 banknote. Five offers have been submitted, and the decision on the most successful offer for the printing of KM 200 banknote will be taken in next two weeks.

Governing Board of the Central Bank of BH agreed to establish a back-up system for RTGS (Real Time Gross Settlements System). The back-up system will be placed in the Main Bank of Republika Srpska of the Central Bank of BH Banja Luka (Main Unit Banja Luka). The Gyro clearing system already has back-up capability as there are three clearing centres, in the CBBH Main Units in Sarajevo, Banja Luka, and Mostar and they will be linked in a way that allows any one centre to cover for another in the event of a technical failure or other problem that affects one sight.