Governor Kozaric at the EBRD Constituency Meeting

On March 15, 2013, the Governor of the Central Bank of Bosnia and Herzegovina, Kemal Kozarić, Ph.D. attended the session of the European Bank for Reconstruction and Development Constituency (EBRD) held in Nicosia (Republic of Cyprus), organized by the Republic of Cyprus Government.

The Constituency meetings are held as a part of preparations for the Annual Assembly of the EBRD, which is planned to take place on May 10 and 11 in Istanbul, Republic of Turkey.

In his presentation of the situation in BH, Governor Kozarić pointed out the macroeconomic indicators, and the status and challenges of the banking, financial and real sectors in Bosnia and Herzegovina and the region of Southeast Europe.

„Bosnia and Herzegovina ended up last year with a minimum GDP growth of 0.6%, and unfortunately, the data throughout the region are similar. Small and open economies like ours largely suffered the consequences of a slowdown in the European Union and it will take some time to recover", Kozarić said, adding that gradual acceleration of economic recovery is expected this year, while bigger economic growth cannot be expected before 2014.

„In the  meantime, we must continue with structural reforms in order to create as better as possible environment for investment and job creation, which is urgently needed, given that Bosnia and Herzegovina is, with the unemployment rate of  28% one of the worst in the region", Governor said.

Considering that the central topics of this year EBRD Constituency meeting are energy production, challenges, opportunities and the role of the EBRD in such projects, in his address the Governor also mentioned the unused resources that our country has.

„Only 37% of all hydropower potential in our country is used, and that is a direct opportunity for institutional investors, such as the EBRD, to consider the possibilities of implementing projects, more so because of the fact that Bosnia and Herzegovina is the exporter of electrical energy for years, in the region with constantly growing demand", Governor concluded, adding that Bosnia and Herzegovina has over 1.000 available river flows and unused potentials in other sectors of renewable energy sources such as geothermal, solar and wind energy.

The representatives of the EBRD, led by a new Director of the Constituency Johannes Seiringer, will visit Sarajevo next week, where they will meet with representatives of Bosnia and Herzegovina who are the main users of the EBRD credit lines. The EBRD invested over EUR 125 million in Bosnia and Herzegovina in 2012, and they confirmed plans to continue activities in our country.

To add the information that along with Bosnia and Herzegovina, the countries: Austria, Cyprus, Israel, Kazakhstan and Malta also belong to the same EBRD Constituency.

Public Relations Section