EBRD Delegation Visiting the CBBH

Delegation of the European Bank for Reconstruction and Development, led by James Hudson, visited the Central Bank of Bosnia and Herzegovina (CBBH), where they met the Governor Kemal Kozarić, Ph.D. and the representatives of the Entities' Banking Agencies and BH Deposit Insurance Agency.

The visit of the EBRD representatives was organized as a part of regular annul consultations to the reprentatives of governments and business sector of the countries in which the  EBRD invests. On these occasions they want to get informed on the modus operandi of their representative offices in BH, and possibilities for improvement of the cooperation and the increase of the investment level. They were interested in the banking sector situation, and the way of functioning of the deposit insurance scheme in BH.

Governor Kozarić has pointed out that the EBRD is important institutional investor for BH, and that it is especially significant, considering that  BH has no access to European funds as EU candidates countries, and also because during the global financial crisis, the EBRD continued the support to the projects in the infrastructure, financial and private sector. Until 2011 end,  the EBRD approved in total app. 1.4 billion euro, and last year 125 million of euro were approved for the infrastructural projects, electrical power sector and the private sector. The Governor pointed out that BH has huge potentials that should be motivating factor for the potential investors. Along with that, it is to expect that the entrance of Croatia in the EU becomes the additional stimulus to the authorities in BH to make more efforts in  pushing the growth.

During the conversation it was stated to have the mutual consent on need to further invest in BH, while the representatives of the EBRD were especially interested in the possibility to increase the crediting of the real sector. They pointed out that the biggest part of credit portfolio of this institution for the industrial production foreseen for the Wester Balkans is intended to BH, and it is expected that the future strategy will remain equally focused on the private sector.

The Directors of the Banking Agencies informed the guests on the indicators and the situation in the banking sector, and pointed out that decreased credit activity is not caused by the restrictive regulations but by more prudent risk assessment of the commercial banks. Also, the Director of the BH Deposit Insurance Agency informed the EBRD representatives on the deposit insurance scheme, and the percentages of coverage.

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