Governor Nicholl Met With Representatives of Commercial Banks in BH Federation

The Governor of the Central Bank of Bosnia & Herzegovina, Mr. Peter Nicholl, along with senior management and staff met with representatives of commercial banks in the Federation of BiH to answer questions about the upcoming changes in the Law on the Internal Payments System. This law would end the practice of using Croatian Kuna (HRK) and German Mark (DEM) in the internal non-cash payment system operated by the payments bureaus (ZPP/ZAP) after 30, September 1999. A large number of banks participated in the meeting.

Representatives of the commercial banks were informed about the role of the CBBH in the reform of the payments system and its function as coordinator in the removal of HRK and DEM from the payments system.

A working group has been formed consisting of representatives of the CBBH, FBiH Ministry of Finance, FBiH Banking Agency, ZPP of Sarajevo and ZAP Mostar. This group is preparing guidelines on how the end of payments operations in the payments bureaus using HRK and DEM will be implemented. These guidelines will be issued by the FBiH Ministry of Finance.

The CBBH will accept all DEM in exchange for KM and enable commercial banks to transfer their cash abroad under existing terms. The use of DEM and HRK for the cash payments by citizens will not be affected after 30, September 1999.

The CBBH will release additional information as it becomes available. A similar meeting with the banks under the jurisdiction of the CBBH Main Unit Mostar will be held on Friday 17, September at the CBBH Main Unit in Mostar, and be followed by a press conference where an opportunity to ask questions will be given to all interested journalists.