US Ambassador Visited The CBBH

Ambassador of the United States of America to Bosnia and Herzegovina H.E. Mr. Patrick S. Moon visited today, on 16 November 2011, the Central Bank of Bosnia and Herzegovina (CBBH), where he met with Governor Kemal Kozarić, Ph.D.

Ambassador Moon has complimented the CBBH work and its efforts in maintaining of the monetary stability, and emphasized the significance of the CBBH role. He also was interested in influence of the world crises, especially in the Euro zone, on BH.

Governor Kozarić emphasized that BH would experience the influence of the crises in Euro zone as well. Since the banks in BH find their sources for credit financing in European Union countries from which their parent banks come, there is a possibility that influence of the debt crises in their countries of origin will reflect on banks' operations in BH, too.

Current data illustrate that banks in BH have high liquidity and that they are well capitalized, but also the issue of non-performing loans, which amount to 12.6 % out of total loans.

The crises has also impact on the economic growth rate, then the foreign direct investments which record the decrease, while unemployment increases.

The Governor also emphasized that BH has own problems, which are reflected in stagnation of the government establishment, budgetary issues, as well as in retard while implementing the necessary reforms which influenced on the impossibility to realize the remaining funds of the Stand-By Arrangement.

While expressing the gratitude for the Ambassador's visit, on behalf of the CBBH, the Governor, also thanked to the US Government, which, through the United States Agency for International Development (USAID) supported the implementation of several projects in the CBBH. American assistance in reform of the payment system, which is considered as one of the most successful reforms in BH, and then in the establishment of the Central Register of Credits of Citizens and Legal Entities in BH, has provided better quality operations of the CBBH.

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