The EBRD Visited the CBBH

Director of the Western Balkans Office in the European Bank for Reconstruction and Development (EBRD) Holger Muent and recently appointed Director of the EBRD Office in Bosnia and Herzegovina Ian Brown visited the Central Bank of Bosnia and Herzegovina (CBBH), where they had a meeting with the Governor Kemal Kozarić, Ph.D. and his associates.

The aim of the visit of EBRD representatives was that newly appointed representatives of this institution for the Region and for Bosnia and Herzegovina become informed on all the key elements of the relations with the state, and to define the modalities of future cooperation. A special focus of the talks between the EBRD delegation and the CBBH Management was the banking sector reform in which EBRD representatives have actively participated over the years.

During the discussion, Holger Muent, emphasized that Bosnia and Herzegovina has remained one of the most important partner - countries to the EBRD, and that the CBBH has been a key institution-partner to the EBRD in this country. While talking about the banking sector it was emphasized that the banking sector, despite all challenges, has remained stable, well-capitalized and liquid, but that there has been a problem of increasing non-performing loans, which currently amount to 15.5% .

Accordingly, the EBRD representatives positively assessed the information that Bosnia and Herzegovina, i.e. Banking Agencies of both Entities are working to create a legal framework to enable the resolution of NPLs issue, today, being the largest challenge for the banking sector in BH.

Governor Kozarić thanked for the active engagement in Bosnia and Herzegovina, and stressed that the EBRD with its 116 projects, since 1996, in total value of EUR 1.68 billion has been one of the most important institutional investors in Bosnia and Herzegovina. "Specially, I need to emphasize that the EBRD kept its maximal engagement during the crisis, too, thus significantly assisting to maintain the level of economic activities in Bosnia and Herzegovina at the time, and, in addition to its direct engagement, the EBRD was able to attract many other investors and make them interested in investing in BH, " emphasized Kozarić.

It is important to mention that the highest percentage of the EBRD investments was made into infrastructural projects: 46% and 29% of total investments was made into financial institutions, 11% into the projects related to power generation and 14% into industry, trade and agribusiness.

In its 2014 to 2017 strategy, the EBRD will focus on restructuring and expansion of local and private sector, on creating closer ties with the wider regional markets and promoting efficient and sustainable exploitation of resources.