Council of Ministers of Bosnia and Herzegovina Holds Its 56th Session

MATERIAL EXPENSES OF BIH INSTITUTIONS REDUCED FOR KM 23 MILLION LAST YEAR 

The Council of Ministers of BIH adopted the Ministry of Finance and Treasury prepared Report on 2015 Budged Execution of Bosnia and Herzegovina Institutions and International Obligations of BIH, to be provided to the Parliamentarian Assembly of BIH. Total achieved revenues and receivables for financing of BIH Institutions in 2015 were KM 965,543,390 or 106 per cent of the originally planned ones, while total expenditures and costs of BIH Institutions in 2015 were 905,274,868. Among revenues, predominant were revenues collected from indirect taxes, total amounting to KM 750,000,000 in 2015 or 100 per cent in relation to the planned ones.

BIH Institutions did not borrow in 2015.

In order to make budget savings, earlier decisions were continued to be implemented on reduction of basic salary for 4.5 per cent in BIH Insituti9ons, and reduction of emoluments to employees for meals, vacation, separate life and material expanses, in were reduced for KM 23,3 million  in 2015, in comparison to the year before.

Last year all due foreign debt obligations due were regularly serviced and without arrears and that in total amount of KM 581,330,866.25.

 

PUBLIC DEBT INFORMATION ADOPTED

 

The Council of Ministers of BIH adopted Information of the Ministry of Finance and Treasury on public debt of Bosnia and Herzegovina as at December 31, 2015, which reached about KM 11.9 billion, and it includes both foreign and domestic debt.

The foreign debt of BIH was about KM 8.4 billion and it was allocated to the Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District of BIH and Institutions of Bosnia and Herzegovina.

In 2015, KM 400.98 loan proceeds were implemented, of which 23 per cent refers to the loans with first drawls started last year. OF total withdrawn loan funds in 2015, 53.28 per cent referred to infrastructure projects, 33.7 per cent to economic activities, while 13.01 per cent related to the public sector.

The internal indebtedness in BIH, s at December 31, 2015 was bout KM 3.5 billion. In total amount, the internal debt of the Federation of BIH was 35.74 per cent, Republika Srpksa was indebted at 63.99 per cent rate, Brčko District at 0.27 per cent, while the state level had no domestic debt obligations by the end of last year. The internal debt includes old hard currency deposit saving-related obligations, war claims, general obligations based on issued securities, in-country loans, refund obligation s and activated guarantees..

 

LAST YEAR ECONMY GREW TO 3%, EMPLOYMENT INCREASED AND DEFICIT DECREASED FOR 8.7 %

 

Last year BIH witnessed an economic growth of nearly 3 %, reads the Annual Report of the on economic trends in BIH in 2015, prepared by the Directorate for Economic Planning, considered by the Council of Ministers of BIH.

The Information indicates that in Bosnia and Herzegovina the physical volume f industrial production grew last year for 2.6 per cent, and achieved growth was followed by the increase of employees in the sector for about 1.5 per cent in comparison to he year before. The industrial growth was made possible mainly due to increase in processing industry featured by a high level of expert orientation, while the share of mining and energy sectors was slightly less because they are determined by domestic demand.

The average number f employed in 2015 continued to increase and was 713,69k, and the number of unemployed continued to lessen and is less for 1.4 per cent compared to year 2014, and was 541.8k. The unemployment decrease trend was more notable in the second half of the year.

Deposits at the end of the year reached KM 16.5 billion, or 98 per cent of total loans. Deposits increased for 7.5 per cent or KM 1.2 billion, compared to the year before, and the major portion of these relate to deposits of citizens, which amount to KM 822.8 million, followed by deposits of non-financial economic entities in amount of KIM 170.1 million, general government KM 103 million and other sectors for amount of KM 59.2 million.

Last year BIH made a total expert of goods in amount of KM 8.9 billion, which represent a nominal increase of 3.5 per cent compared to the year before, while the real growth was somewhat higher due to a decrease of export prices and it was about 3.8 per cent. In the course of year 2015, total BIH goods export was closely KM 15.9 billion, and was nominally decreased for 2.1 per cent compared to the year before. The foreign trade goods deficit in 2015 was about KM 6.9 billion and was less for 8.7 per cent, compared to the year before.

According to the report the foreign direct investments were KM 473.158 million in 2015, or less for 34.8 per cent in relation to year 2014.

 

CITIZENS’ SUPPORT TO BIH ENTRY BIH TO EU

 

The Council of Ministers of BIH adopted information of the Directorate for European Integrations on results of a public pool: opinion of citizens about the membership in the EU and the EU integrations process in 2016, which showed that 76 per cent of BIH respondents support accession of Bosnia and Herzegovina to the European union, which is for two per cents less than in the last year’s pool.

The entry to the EU is supported by 91 per cent of respondents in the Federation of Bosnia and Herzegovina, 50.7 per cent in Republika Srpska, and 90 per cent in the Brčko District of BIH. More than 64 per cent of respondents believes that BIH road to the EU has no alternative.

Out of 18.8 respondents who would vote against the entry to the EU, 51.1 per cent of them believe that the living costs would increase, while 8.4 per cent of respondents were against joining the EU because of too extensive centralisation.

For 46.6 per cent of respondents, the fight against corruption is the most important reform, necessary for improvement of everyday life of BIH citizens, and for 11.6 of them it is the decrease of tax burden on economic activity and removal of barriers to employment, while 10.8 per cent of respondents point at court and prosecution reforms as the most needed reform.

The fact that the reforms should be implemented for the sake of creation of better living conditions in BIH, rather than as a requirement for EU membership is the belief of 73 per cent of respondents, while 17 per cent of them believe that the reforms are needed solely as a condition for the entry to the EU.

Almost 50 per cent of the respondents were informed that BIH has filled its application for the EU membership, while 23 per cent believe that BIH already negotiates its EU membership.

More than 27 per cent of respondents is of the opinion that the further progressing of our country and joining the EU is mostly impaired by the political hype of the integrations process, and 12.7 per cent of the respondents sees the EU policy of conditioning applied against our country as the main reason of slow progressing, while 12.2 percent point at non-readiness to changes as the main obstacle to the entry of our country to the EU.

 

 

The major benefit of entry to the EU would be for the young persons, according to 42.3 per cent of respondents, who are followed by politicians, as 18.6 per cent of respondents believe, and finally students and researchers, in the opinion of 5.9 per cent of respondents.

The Directorate for European Integrations conducted the pool in the period between March 24 and April 10, 2016 applying the CATI method (phone interviews) at 1,200 respondent base throughout BIH.

 

BIH TOGEHER WITH SERBIA AND MONTENEGRO STRENGTHENS REGIONAL COOPERATION

 

The Council of Ministers of BIH defined a Proposal Grant Agreement of the Trust Fund for Global Ecology Capacities and Special Fund for Climate Change (The Diver Drina Basin Management on Western Balkans) between Bosnia and Herzegovina and the International Bank for Reconstruction and Development, as the implementing agency of the global ecology capacities and implementing agency of the Global Ecology Capacities Special Fund for Climate Change.. It is a regional project in which other than Bosnia and Herzegovina, participating partner countries are the Republic of Serbia and Montenegro, and its aim is planning and management of the cross-order basin of the River Drina and strengthening of climate change adaptation capacities.

The value of the grant for Bosnia and Herzegovina is USD 3,375,270.00, of which USD 2,060,885 was allocated to Republika Srpska, and 1,094,385.00 to the Federation of BIH.

The grant total value for all three countries is USD 8,832,420.00, namely 37 per cent (USD 3,375,270.00) for BIH, 32 per cent (USD 2,73 million ) for Montenegro and 31 per cent (USD 2,67 million)  for Serbia.

Participating in the project, Bosnia and Herzegovina confirms its commitment to the strengthening of regional cooperation and adoption of uniform standards relating to clime management.

The Ministry of Finance and Treasury will provide the Proposal Agreement to the BIH Presidency for further procedure, and Minister Vjekoslav Bevnada was proposed for the BIH signatory.

 

TO SOLVE ISSUE OF WAER SUPPLY FOR CITIZENS OF VISOKO

 

The Council of Ministers of BIH endorsed an initiative of the Ministry of Finance and Treasury to hold negotiations for conclusion of a Loan Contract (Water Supply in Visoko Project) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, worth EUR 4.5 million.

The aim of the project is the reconstruction of the urban water pipeline, which would solve the issue of water supply for about 12,000 citizens of Visoko in the communities of Gračnica, Moštre and Proejčani, while other citizens of this municipality will also benefit from the reconstruction of the urban water supply pipeline.

The loan term is 15 years with three-year grace period and concessive EURIBOR interest rate.

After negotiations, the Ministry of Finance and Treasury will provide the Proposal Agreement to the Council of Ministers of BIH with basics for its conclusion, in compliance with the Law on Borrowing, Debt and Guarantees of BIH.

 

ANNUAL CONSUMER PROTECTION STATE PROGRAMME ADOPTED

 

The Council of Ministers of BIH took a decision, upon a proposal of the Ministry of Foreign Trade and Economic Relations, to adopt an Annual Consumer Protection State Programme for 2016, developed by the Consumer Protection Council, for the improvement of quality of life of BIH citizens and harmonisation of the area with the European Union standards.

The Annual Consumer Protection State Programme is a comprehensive document, creating a consumer protection policy, defining priorities, setting measures for its implementation in 2016, and defining the holders of activities planned under the programme.

 

AGRICULTURE IMPROVEMENT ACTIVITIES CONTINUE

 

The Council of Ministers of BIH adopted separate reports, upon a proposal of the Ministry of Foreign Trade and Economic Relations, on establishment of reporting mechanisms concerning agricultural subsidies in Bosnia and Herzegovina, in accordance with the obligations under the World Trade Organisation notifications, as well as concerning the establishment of the IT system in agriculture in Bosnia and Herzegovina aiming the harmonisation with the EU practice.

The Ministry of Foreign Trade and Economic Relations, in cooperation with competent Entity, cantonal and Brčko District authorities, will continue mentioned activities in these areas.

 

INTERNATIOANL ASSISTANCE FOR AGRICULTURE, FOOD AND RURAL DEVELOPEMNT SECTORS

 

The Council of Ministers of BIH adopted a report of the Ministry of Foreign Trade and Economic Relations on international assistance for sectors of agriculture, food and rural development in Bosnia and Herzegovina in 2015, as one of important parameters for further progressing of BIH towards the European Union and for the reason of activation of unused natural and human resources in these areas.

The report contains data enabling the interested parties gain a better insight into institutional activities in Bosnia and Herzegovina, as well as into international donor activities, in order to help identify needs in agricultural sector for achieving the planned sector aims. Also, the report should assist potential donors develop their respective plans and define priorities for support in investments to the agriculture, food, forestry and rural development sectors, in line with strategic priorities in Bosnia and Herzegovina.

 

ZIROJEVIĆ APPOINTED FOR MEMBEER OF STEERING BOARD OF INDEPENDENT SYSTEM OPERATOR

 

The Council of Ministers appointed Mladen Zirojević for a member from Republika Srpska of the Steering Board of the Independent System Operator in Bosnia and Herzegovina for a five-year term. The proposal appointed was filled by Republika Srpska to the Ministry of Foreign Trade and Economic Relations.

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