Council of Ministers of BIH Holds Its 117th Session

ANTI-ORGANSIED CRIME STRATEGY ADOPTED 

The Council of Ministers of BIH took a decision, proposed by the Ministry of Security, to adopt a 2017-2020 Anti-Organised Crime Strategy in Bosnia and Herzegovina for, drafted by a work group comprised of representatives of relevant institutions.

The Strategy highlights the strengthening of capacity and cooperation among competent institutions in BIH for combating all forms of organised crime and further intensification of regional and international cooperation.

Seven strategic goals and tens of measures will be implemented by the Council of Ministers of BIH, Entity and Brčko District Governments by 2020 for the aim of more effective fight against organised crime and corruption.

A continuous harmonisation of BIH legislation with relevant international standards will take place, such as the improvement of legal and institutional framework for combating organised crime, strengthening of institutional capacities and development of a proactive approach in combating organised crime, like seizure of property and assets gained though criminal actions  of organised crime, development of cooperation at both regional and institutional levels and strengthening of cooperation of all public institutions with private sector and civil society.

All institutions involved in the drafting the Strategy are obliged to provide within 60 day deadline their respective action plans for the strategy implementation.

 

ANSWERS TO EC QUESTIONNAIRE TO BE TRANSLATED

 

The Council of Ministries of BIH took note of Information by het Directorate for European Integrations and current and future activities on preparation of answers to questions from the European Commission Questionnaire.

According to Information, the process of technical finalisation of answers from the European Commission Questionnaire is in its end phase, and 143 translators from throughout BIH, selected via a public call, are expected to be engaged in the process of the translation to English language.

Information is a part of continuous reporting to the Council of Ministers of BIH on the European integrations process.

 

FOREIGN INDEBTEDNESS DECERASED

 

The Council of Ministers of BIH adopted and will forward to the BIH Parliamentarian Assembly House of Representatives Information of the ministry of Finance and Treasury on public indebtedness of Bosnia and Herzegovina as at June 30, 2017, which amounts to KM 11.7 billion, and is less for KM 389.25 million relative to the end 2016.

The foreign debt is about KM 8.07 billion or 68.98 per cent, while the internal debt us about KM 3.63 billion or 31.02 per cent of total public debt. In the first six months of this year, the foreign debt was decreased for KM 471.70 million, in relation to Dec. 31, 2016, and the internal debt was increased for KM 82.45 million.

The share of BIH public debt in BIH GDP is 36.74 per cent.

Foreign debt servicing in the first half of 2017 was KM 446.54 million, of which KM 384.51 million or 86.11 per cent for principal and KM 62.03 million or 13.89 per cent for interest.

 

BIH LEST INDEPTED COUNTRY AMONG IN REGION

 

The Council of Ministers of BIH adopted Information on BIH fiscal sustainability, which indicated that Bosnia and Herzegovina is at the level of the least indebted transition countries of the Central and Eastern Europe, and the least indebted among Ex-Yugoslavia countries.

The indebtedness of general government in 2016 was 42.5 per cent of GDP, including liabilities like old hard currency savings and war obligations, while the real indebtedness based on verified liabilities amounted 39.8 per cent of GDP. The indebtedness was considerably reduced over the last two years, in relation to year 2014, when it reached the record 45 per cent of GDP.

However, the indebtedness of Republika Srpska in 2016 was 57.6 per cent of the Entity GDP, while indebtedness of the federation of BIH last year was 35.4 GDP, reads Information of the Directorate for Economic Planning.

 

FDIs GROW IN FIRST FIVE MONTHS OF 2017

 

The Council of Ministers of BIH took note of Information on foreign direct investments, prepared by the BIH Foreign Investment Promotion Agency, in accordance with a conclusion of both chambers of the BIH Parliamentarian Assembly.

In the first five months of this year, the worth of foreign direct investments was KM 386.7 million, and were higher for 66.8 per cent, in relation of the same period of time last year, which proved of the continued growth trend from the Q1 2017.

Foreign direct investments in the first three month of this year were KM 211 million, as they increased for Km 74 million compared to the same period of time i2015, when they amounted to Km 137 million. Foreign direct investments in BIH were KM 536.3 million last year.

 

DRAFT LAW ON DEPOSIT INSURANCE AND AMENDMETNS OF LABOUR LAW

 

The Council of Ministers will, at one of the following sessions, reflex on a Draft Law on Deposit Insurance in Banks in Bosnia and Herzegovina, after the Deposit Insurance Agency considers Ministers’ and the Council of Ministers Legislative Office suggestion made a today’s session.

The Council of ministers of BIH will also come out on a Proposal Law on Amendments and Supplements to the Law in Labour in the institutions of Bosna and Herzegovina, within the next 15 days, after written suggestions by Ministers are incorporated into the text Law.

 

TO REALSIE FINAL AWARD OF THE HAGUE ARBITRAGE COURT

 

The Ministry of Finance and Treasury will, in cooperation with the Ministry of Communications and Transport and Chief Attorney’s Office of Bosnia and Herzegovina, realise a final award of the Arbitrage Court in the Hague, of July 24, 2017, taken in an arbitrage procedure upon a claim by the Strabag AG Company against the Ministry of Communications and Transport of BIH, in respect to principal and interest.

The conclusion was made after the Council of Ministers of BIH was made familiar of information and position of the Chief Attorney’s Office concerning eth finality of the award.

The final award by individual arbiter of July 24, 2017 in part referring to costs of the arbitrage procedure will be realised after the individual arbiter takes decision on costs upon a claim by the Strabag AG, requesting the correction of the decision.

Under the final award of The Hague Arbitrage Court, the Ministry of communications and Transport is obliged to make-up EUR 910,846.68 to the Strabag Ag Company, in addition to   EUR 193.52 daily interest accounted until the date of payment against legal and other expenses and the amount the plaintiff paid in advance for the procedure.

The Ministry of Communicational and Transport is tasked to provide toe the Council of Ministers a full report on a meeting held with representatives of the Strabag Company, aimed at reaching an amicable settlement of the dispute.

The incumbent Council of Ministers authorised  the chief Attorney’s Office and Ministry of Communications and Transport, in February 2016, to take all needed actions and measures for amicable settlement of the dispute, including possible making of an out-of-court settlement, but despite the meeting, an agreement missed.

Earlier, the Council of Ministers concluded that the Chief Attorney’s Office should send information of the matter to the Supreme Prosecutor’s Office of BIH and State Investigations and Protection Agency, accompanied by all the arbitrage related documents attached, which information, now complemented, will include a refund request and will be forwarded again to the Supreme Prosecutor’s Office.

The Strabag Company sued BIH for it was not included into the Svilaj Bridge construction, after it won the tender.

 

CHINA’S MILITARY ASSISTANCE FOR MODERNSIATION OF BIH ARMED FORCES

 

The Council of Ministers of BIH defined a Proposal Agreement between the Ministry of Defence of Bosnia and Herzegovina and Ministry of the People’s Defence of the People’s Republic of China on KM 2.5 million Military Assistance to Bosnia and Herzegovina.

The Agreement promotes the defence cooperation with the People’s Republic of China, and contributes modernisation and operability of the BIH Armed Forces.

The Ministry of Defence will provide a Proposal Basics for concluding the Agreement to the BIH Presidency for further procedure, accompanied by a suggestion for the Minister of Defence as the BIH signatory.

Also the BIH Presidency was proposed to allow a temporary application of the Agreement until the ratification thereof.

 

INCREASED GRANT FOR RETURNEES

 

The Council of Ministers of BIH defined a Proposal Amendment to the Grant Agreement between eth council of Europe Development Bank and Bosnia and Herzegovina in relation to the regional Housing Programme and other sub-projects within the Housing Programme in Bosnia and Herzegovina.

Practically, due to an increase of number of beneficiaries, increased for EUR one million will be the presently worth EUR 13.6 million approved grant value, and its implementation time will be extended to February 2018.

The Grant funds are intended for the sub-project within of the “Housing for 780 Households for Return, Reintegration and Local Integration” State Project.

Bosnia and Herzegovina and countries of the region earlier signed a EUR 101 million Framework Agreement with the Council of Europe Development Bank for the purpose of solving the housing issue for 5.400 households to include about 14.000 individuals.

The proposal Amendment with the Basics for its conclusion will be provided to the BIH Presidency for further procedure, and the Minister of Finance and treasury was proposed of the BIH signatory.

 

MILK AND DAIRY PRODUCTS FROM BIH AT EU MARKET

 

The Council of Ministers of BIH adopted an Analysis of the situation with the milk and dairy products market in Bosnia and Herzegovina for 201-2016, which suggests that the domestic production in the reported five-year time span achieved stability and a slight increase.

The export of milk and dairy products in 2016 was 11 per cent larger than in the year before.

With the purchase of fresh milk, the dairy industry deals increasingly with producing higher market value products, such as cheese, buttermilk, yogurt and other fermented products, the production of which continuously grows.

The loss of the Croatian market in mid-2013 was made-up by placement of milk and dairy products to domestic and CEFTA Agreement countries’ markets.

In early 2016, the fulfilment of requirements for continued export of milk and dairy products to the European market was confirmed, and exporter list enlarged by new dairies, which marked the major advancement in the agriculture sector in Bosnia and Herzegovina over the past several years.

The future development of the dairy sector in BIH is very important since the regional competition grows following an evident recovery of the sector in the Republic of Serbia, resulting in an increased milk production and improved dairy products market placement.

Therefore, the Ministry of Foreign Trade and Economic Relations will continue to monitor the situation in the area and report the Council of Ministers of BIH annually.

 

ACTION PLAN IMPLEMENTATION FOR REALISATION OF EC 2016 REPORT

 

The Council of Ministers of BIH adopted the second quarter report on implementation of measures under an Action Plan for realisation of priorities from the EC 2016 Report for Bosnia and Herzegovina, the Directorate for European Integrations will forward to the BIH Parliamentarian Assembly.

Out of planned 84 measures, 37 were realised in April-June, and the realisation of four measures is in the process, while 43 measures remained unrealised. In the reported period additional 18 measures, out of 35 unrealised measures from the previous period, were realised, so that in the first two quarters 84 measures were realised and six measures in the process of realisation, out of total 156. Total 58 per cent of measures were realised or are in the realisation process, while 42 per cent were unrealised.

Additionally realised were seven measures planned to be realised beyond the reported period, and activities were started for realisation of additional 200 measures, planned to be realised in the coming period of time.

The Action plan envisaged total 631 measures to be realised in 2017 and the first two months of 2018 by institutions at the State, Entity, Brčko District and cantonal levels, in line with their Constitutional competences.

 

PUBLIC ADMINISTRATION REFORM IMPLEMENTATION TO ADVANCE

 

The Council of Ministers of BH adopted a progress Report of the Public Administration Reform Coordinator’s Office (monitoring of the Public Administration Reform Strategy Revised Action Plan 1) for January-June 2017.

The first half of this year saw the realisation of 60 per net goals form the revised Action Plan 1, which is for one per cent more than the previous year, and the major improvement was made at the State level.

The major goal fulfilment, viewed by the revised Action Plan 1 areas, was made in the area of institutional communication – 79 per cent, and the major realisation percentage achieved at het State level – 85 per cent. The e-Government area had the smallest goal realisation - 50 per cent. The biggest semi-annual increase of goal fulfilment was made in the areas of strategic planning, coordination, policy development and human resources management.

As to total realisation of the Revised Action Plan 1 goals, the major percentage – 75 per cent -  was made in Republika Srpska, and the smallest realisation percentage was made in the Brčko District of BIH and Federation of BIH – with 64 per cent RAP1 goals fulfilled.

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