The Representatives Of the Austrian Development Agency And the Media Visited the CBBH

The representatives of the Austrian Development Agency and the group of journalists from the most significant Austrian media, led by the Ambassador of the Republic of Austria in BH, Donatus Köck, visited on November 10, 2010, the Central Bank of Bosnia and Herzegovina (CBBH).

During the conversation, the Governor of the CBBH Kemal Kozarić, Ph.D., explained the economic situation and macroeconomic indicators of BH, pointing out,  as the two biggest problems of BH economy, the high unemployement rate and large share of public spending in GDP. The guests were particularly interested in Stand-by Arrangement and the fulfilling of conditions for its further realisation, the possibilities for further Austrian investments in BH, the reforms needed to be implemented in BH economy, and the advantages of the liberalisation of the visa regime for BH bussinesmen.

The FDI decreased in BH, and for its larger inflow, beside the political stability and convergence with the EU, the simpler procedure for the business start-up and improvement of the image of BH in the world are needed. This will lead to a more favorable environment for investments, the Governor said.

Commenting specifically on the economic cooperation between the two countries, the Governor pointed out that Austria is a significant foreign trade partner for BH. For the nine months of this year, the data show that BH exported goods in the value of about KM 346 million to Austria, and imported goods in the value of about KM 358 million from Austria, and the export-import ratio with Austria is 96,7%.

Austria is significant for BH because of historical relations, but also as one of the biggest foreign investor in BH, whose biggest investments have been realised in financial sector, particularly in the banking sector.

In the context of strengthening relations with the EU, the Governor reminded that the Austrian National Bank, within the EU technical assistance, participated in the preparation of the CBBH Needs Assessment Program. The experts from the Austrian National Bank provided the assistance in the analysis of  statistical capacity of the CBBH and in defining the goals in the processes of European integration. The Austrian National Bank continued its active role as a partner within the technical assistance program to the CBBH, which is ongoing.

Beside the cooperation through the EU projects, good bilateral cooperation between the CBBH and the Austrian National Bank was also mentioned, and during the financial crisis, the CBBH has made positive contacts with the Austrian Ministry of Finance and the institution for the supervision of the financial sector.  

Public Relations Section