Austrian Ambassador visited the CBBH

On March 15, 2012, Ambassador of the Republic of Austria H.E. Dr Donatus Köck visited the Central Bank of Bosnia and Herzegovina (CBBH) and met with the Governor Kemal Kozarić, Ph.D. and his associates. Along with Ambassador Köck, the Austrian Delegation featured Johannes Eigner, Ph.D., Brigitte Pfriemer, M.Sc. and Dražen Maloča, M.Sc.

In discussion with Austrian Ambassador, the Governor emphasized that Republic of Austria is significant for BH, because of the historical background, as well as important investor, therefore it is necessary to maintain the good relations. Governor Kozarić emphasized the good cooperation with Embassy of Republic of Austria as well as with all relevant institutions and authorities of Republic of Austria, especially with the Österreichische Nationalbank (OeNB). Also, on this occasion, he informed guests about the macroeconomic data. According to the preliminary data, the Gross Domestic Product (GDP) growth rate was 1.8%, foreign debt amounted to 25.7% of the GDP and according to that BH is moderately indebted country. The direct foreign investments amounted to KM 470 million app., foreign exchange reserves amounted to EUR 3.2 billion and they are stable, while inflation was on relatively low level of 3.1%.

When in question is the cooperation between BH and Austria, the Governor emphasized that this is dynamic relation, and this is the first time in this year that BH has achieved the surplus in that relations. In the discussion special emphasis was put on the banking sector and positive influence  which Austrian banks had in process of reconstruction and initiation of investments, as well as in adoption of  the western standards of business in BH. However, the adoption of strategic decisions outside the BH monetary authorities' reach, was assessed by the Governor as potential weakness of the banking sector.

Ambassador and his associates stated that the stability of the currency has been very important for development and they were interested in the future of the Currency Board as a model of monetary policy in BH. The Governor stressed that the existing model of monetary policy is determined by law, and although it has been considered as conservative model brought the monetary stability and contributed to the return of confidence in the currency, as illustrated in the increase of savings. Also, the CBBH estimates are that exchange rate of BAM to EUR is well positioned and export growth model shows that monetary policy does not make obstacles for exporters. Participants of meeting also discussed the subject of the soon Croatian accession to the EU, and its implications to the region, particularly onto BH.

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