KM Gross Sales in RS Increases

The Governor of the Central Bank of Bosnia & Herzegovina, (CBBH), Mr. Peter Nicholl said on Thursday in Banja Luka that the gross sale of the Convertible Mark, (KM) in the Republika Srpska has reached the 99.8 million level marking an all time high since the currency's release on 22nd June, 1998. The present level was attained with strong sales of KM over the past two months. Governor Nicholl told an afternoon news briefing that the level of KM deposits in banks has increased from 5 million KM in December 1998 to around 50 million KM today, explaining also that much of this increase was due to an influx of hard currency from the World Bank and other international donors. According to other data presented by the CBBH at the news conference, the Governor stated that the use of the KM in the Republika Srpska in relation to the German Mark, (DEM) and the Yugoslav dinar now amounts to more than 50% of transactions, and of bank deposits. The Governor also announced that the transfer of the Main Bank of Republika Srpska/CBBH Main unit from Pale to Banja Luka had commenced. "Mirjana Jacomovic would be the new main branch manager, the office in Banja Luka would be increased from 6 persons to 10 persons. The management of the commercial bank reserve accounts in the Banja Luka region would be taked over by the CBBH Banja Luka office from the 3rd of May 1999.with the Pale unit existing only as a branch, but not the Main Unit", said Governor Nicholl. The Governor met earlier in the day with the chairman of the Bosnian Presidency, Mr. Živko Radisic and Prime Minister of the Repuiblika Srpska Milorad Dodik regarding the Main Units transfer, and had received promises that the government would try to assist the CBBH in finding adequate premises. Governor Nicholl acknowledged that the conflict in Yugoslavia was having an effect on the RS budget and said that in response to this a meeting of the IMF last week in Washington was held in order to discuss further assistance for that budget. The Governor also promoted the fact that soon, pending regulatory approval and signature of final contracts, the KM would be available for exchange at three banks in Hungary and Splitska banka d.d. in Croatia.