The huge BiH diaspora, which counts around two million people, sends between two and 2.3 billion BAM to BiH every year. Majority of that money is transferred through informal channels, family and friends, which is why authorities in BiH considered the possibility to distribute the majority of that money from the diaspora to the BiH citizens via banks, by making amendments to legal procedures and by creating a more flexible environment.
Ministry of Human Rights and Refugees requested that the sending of this money is motivated with formal ways through reduction of transfer costs. Research shows that only 22.5 percent out of 2.3 billion BAM, which is the amount that is sent from the diaspora to BiH annually, comes through banks, and the rest comes through other channels.
Also requested will be the adoption of legal measures in order to direct the money shipments from the diaspora at the stimulation of investments in BiH. “Savings of BiH diaspora, although mostly kept in countries of reception, represents an enormous financial resource, several times larger than the amount of financial remittances.
It is estimated that the amount is around several billion EUR annually which, along with appropriate incentives, grants and regulatory framework, can be directed at investing and saving in BiH. Second generation of diaspora has greater potential for contribution to the development of BiH because it is very well-integrated into the society of the country of reception, but still emotionally connected with the country of their parents’ origin,” it was stated in the analysis by the Ministry of Human Rights.
International Organization for Migrations (IOM) and the research company IASCI, which conducted one analysis on financial potential of the BiH diaspora for the needs of the Developmental Bank of Austria, recommends to “foresee in the developmental documents the establishment of financial programs for attracting savings by diaspora for investing and saving in BiH”.
(Source: fokus.ba/photo: fokus.ba)
