Press Release

Regarding the statement which was made by the Republika Srpska (RS) Prime Minister Milorad Dodik on the startup of the constitutional suit for the return of the profit made by the Central Bank of Bosnia and Herzegovina (CBBH) to the Entities, the CBBH wants to point out several incorrect allegations.

The CBBH is one of few state institutions that have the cornerstones for their establishment in the Dayton Peace Accord. Namely, the CBBH, together with the BH Constitutional Court, BH Presidency and BH Parliamentary Assembly, is the institution which was founded by the Dayton Peace Accord. Articles 3 and 7 of the Annex IV of the Dayton Peace Accord define that the monetary policy is one of authentic responsibilities of the institutions of Bosnia and Herzegovina and that the CBBH is the only institution responsible for issuing of currency and the monetary policy in the entire territory of BH.

Its independence is defined by the Article 3 of the Law on the CBBH. In this Article, it is stated that "Within the limits of its authority defined by this Law, the Central Bank shall be entirely independent from the Federation of Bosnia and Herzegovina, the Republika Srpska, any public agency and any other authorities in the pursuit of its objective execution of its tasks. Except as otherwise specified by this Law, the Central Bank shall take no instructions from any other subject".

As far as the distribution of the part of the net profit of the CBBH, it is defined by the Article 27 of the Law on the Central Bank of BH. This Article sets that the part of the net profit, i.e. 40% of it shall be allocated for the increase of capital and reserve for general reserve of the Central Bank, and 60% shall be allocated by the Central Bank in the account of the institution in charge of the Budget of Bosnia and Herzegovina in the period of four months after the end of the budgetary year. This Decision has been made by the Parliamentary Assembly of Bosnia and Herzegovina. In this way, the amount of money required for the financing of budget needs, and which is provided from the single account, is reduced.

The CBBH, like every other central bank in the world, invests its foreign reserves in foreign banks. The investment is done in accordance with the strictly established guidelines. The CBBH assets are not deposited in any of banks which have founded the banks in the BH territory and, therefore, in none such bank in Austria.

Article 1 of the Law on the CBBH defines that the CBBH Main Office is in Sarajevo. Regarding the initiative for moving of the CBBH Main Office to Banja Luka, which is explained with the need to decentralize institutions of the system, which is the common practice in democratic countries, the CBBH reminds that for 10 years it is operating as the decentralized institution through its Main Units in Sarajevo, Banja Luka and Mostar and Branches in Brčko and Pale. In this way, the CBBH, since the very beginning of its operations, has been respecting the principle of decentralization, which is implemented in democratic countries.

Finally, the CBBH, as the independent institution should not be the subject to political debates, since it expects to have its results and activities recognized as the benefit for all citizens of Bosnia and Herzegovina.

Public Relations Section